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Mergers & Acquisitions

Valuation for M&A: Building Value in Private Companies
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Valuation for M&A: Building Value in Private Companies

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The only resource available to help calculate investment value versus fair market value

Whether buying or selling, the question of "what's it worth?" is multifaceted. In an M&A setting, it is necessary to compute fair market value, but it is far more important to compute investment value-the value of the target company to a strategic buyer. This calculation varies with each prospective buyer, depending on synergies, benefits, and other competitive analyses that are seldom involved in business valuation. Valuation for M&A is the first book to focus on valuation for merger and acquisitions. This groundbreaking guide provides document request checklists, sample interview questions, a format for adjusting financial statements, a format for developing discount rates, a format for computation of net cash flow, and a valuation reconciliation form, all to help senior executives and M&A professionals better negotiate a successful deal.

Frank C. Evans is a certified business appraiser (CBA), Accredited Senior Business Appraiser in Business Valuation (ASA), and CPA (accredited in business valuation) and David M. Bishop is a Master Certified Business Appraiser (MCBA), Accredited Senior Business Appraiser in Business Valuation (ASA), Fellow of the Institute of Business Appraisers (FIBA), and Business Valuator Accredited for Litigation (BVAL).

 
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Product Details
Author:Frank C. Evans
Hardcover:288 pages
Publisher:Wiley
Publication Date:September 14, 2001
ISBN:0471411019
Package Length:8.98 inches
Package Width:5.98 inches
Package Height:1.02 inches
Package Weight:1.37 pounds
Average Customer Rating: based on 7 reviews

Customer Reviews
Average Customer Review:4.0
Write an online review and share your thoughts with other customers.

3Simpel to follow.  Sep 04, 2008
Hello!

the book is definitely worth having a look into it, although theory clashes with practice a lot of times!

If you are interested in how the big shot i-banks like JP Morgan or Deutsche Bank are valuating companies or if you are preparing for interviews, I might have some valuable insights for you! just drop me a message to sarah_schuebl@yahoo.de

best regards!
Sarah

1 of 2 found the following review helpful:

1definitively a bad book  Mar 16, 2007
I have carried out several valuations in real life and am very familiar with the terminology and methods commonly used to valuate a company. This book unfortunately has not meet my expectations at all. It is very confusing and lacks of clear structure, especially when describing the DCF method, WACC and all other valuation key parameters. Extremely dissapointing.


4 of 5 found the following review helpful:

3Valuation Approach Overview  Aug 04, 2005
This book provides a good overview of how to value a private company in a merger or acquisition. It provides a solid guide on how to do a comprehensive private business valuation but glosses over the details within the various valuation methods.

9 of 9 found the following review helpful:

5Practical, accurate, hands-on book  Apr 23, 2004
I'm working on acquisitions of small to medium sized private companies. I found this book to be very practical in going through not just the valuation math, but also the considerations. The book gives a great overview of the whole process, with ideas of how to get more precise with things like Monte Carlo and Real options. On the core pieces, there is a careful step through of multiperiod DCF including terminal value which is very helpful. Also there is a lot of talk about discount rates which I found very helpful.

The book concludes with a thorough valuation example that is adapted from a real transaction. It provides a great way to pull together all of the knowledge in the book.

I'd also recommend "Analysis for Financial Management" in addition to this book, for its in depth treatment of key financial fundamentals, including DCF valuation.

19 of 19 found the following review helpful:

5"How-To" Apply Solid Valuation Theory  Dec 23, 2001
This book meets important needs of buyers, sellers, valuation analysts, and owners of private companies who want to build value in them. Here are just a few of the important functions that the reader will learn:

1. How to apply solid valuation theory. Provides the best treatment of many valuation issues that I have seen. This set of benefits goes far beyond M&A valuation settings.
2. How to value "synergy," which is often discussed but rarely measured accurately.
3. How to avoid mistakes commonly made by buyers, sellers, and valuation analysts.
4. How to value start-up companies, including high-tech ones.
5. How to create and measure value in private companies.

And...the authors communicate their insights and methods very clearly. Most readers will find this book one of the best investments they have made.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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