The Market Approach to Valuing Businesses, 2nd Edition

Foreword.

Preface.

Acknowledgments.

Notation System Used in This Book.

Introduction.

PART I: DEFINING MARKET MULTIPLES AND MARKET APPROACH METHODS.

1. Defining Market Value Multiples.

2. The Guideline Public Company Method.

3. The Guideline Transaction (Merged and Acquired Company) Method.

4.Other Market Methods.

PART II: FINDING AND ANALYZING COMPARATIVE MARKET TRANSACTION DATA.

5. Finding Public Company Market Transaction Data.

6. Finding Merger amd Acquisition Market Data.

7. Adjusting Financial Statements.

8. Comparative Financial Analysis.

PART III: COMPLILING MARKET VALUE TABLES AND REACHING A VALUE CONCLUSION.

9. Compiling Useful Market Value Tables.

10. Selecting, Weighting, and Adjusting Market Value Multiples.

11. Control Premiums and Minority Discounts.

12. Discounts for Lack of Marketability.

PART IV: SAMPLE MARKET APPROACH CASES.

13. Small-Size Service Company Sample Case-Sub Shop.

14. Medium-Size Service Company Sample Case-Software Developer.

PART V: IMPORTANT ASPECTS OF USING THE MARKET APPROACH.

15. Reconciling Market Approach Values with Income and Asset Approach Values.

16. Does Size Matter? Evidence from Empirical Data.

17. Common Errors in Implementing the Market Approach.

18. The Dismal Track Record of U.S. Market Acquisitions.

19. The Market Approach in the Courts.

Appendix A: Bibliography.

Appendix B: Data Resources.

Appendix C: International Glossary of Business Valuation Terms.

Appendix D: The Quantitative Marketability Discount Model.

Appendix E: Pratt's Stats^TM Data Contributors.

Index.