{"product_id":"valuation-for-ma-9781119433835","title":"Valuation for MA","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e\u003cp\u003e\u003cb\u003eDetermine a company''s value, what drives it, and how to enhance value during a M\u0026amp;A\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eValuation for M\u0026amp;A\u003c\/i\u003e lays out the steps for measuring and managing value creation in non-publicly traded entities, and helps investors, executives, and their advisors determine the optimum strategy to enhance both market value and strategic value and maximize return on investment.\u003c\/p\u003e \u003cp\u003eAs a starting point in planning for a transaction, it is helpful to compute fair market value, which represents a floor value for the seller since it by definition represents a value agreed upon by any hypothetical willing and able buyer and seller. But for M\u0026amp;A, it is more important to compute investment value, which is the value of the target company to a strategic buyer (and which can vary with each prospective buyer).\u003c\/p\u003e \u003cul\u003e \u003cli\u003ePrepare for the sale and acquisition of a firm\u003c\/li\u003e \u003cli\u003eIdentify, quantify, and qualify the synergies that increase value to strategic buyers\u003c\/li\u003e \u003cli\u003eGet access to new\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003e\u003ci\u003ePreface xi\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eDedication and Acknowledgments xv\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART I Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1\u003c\/b\u003e \u003cb\u003eWinning through Mergers and Acquisitions 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCritical Values Shareholders Overlook 5\u003c\/p\u003e \u003cp\u003eStand-Alone Fair Market Value 6\u003c\/p\u003e \u003cp\u003eInvestment Value to Strategic Buyers 8\u003c\/p\u003e \u003cp\u003eWin–Win Benefits of Merger and Acquisition 10\u003c\/p\u003e \u003cp\u003eComputation of Cavendish’s Stand-Alone, Fair Market Value 11\u003c\/p\u003e \u003cp\u003eInvestment Value to Strategic Buyer 12\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART II Building Value 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Building Value and Measuring Return on Investment in a Private Company 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePublic Company Value Creation Model 17\u003c\/p\u003e \u003cp\u003eComputing Private Company Value Creation and ROI 19\u003c\/p\u003e \u003cp\u003eAnalyzing Value Creation Strategies 35\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Market and Competitive Analysis 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLinking Strategic Planning to Building Value 43\u003c\/p\u003e \u003cp\u003eAssessing Specific Company Risk 48\u003c\/p\u003e \u003cp\u003eCompetitive Factors Frequently Encountered in Nonpublic Entities 53\u003c\/p\u003e \u003cp\u003eFinancial Analysis 54\u003c\/p\u003e \u003cp\u003eConclusion 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4\u003c\/b\u003e \u003cb\u003eMerger and Acquisition Market and Planning Process 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCommon Seller and Buyer Motivations 64\u003c\/p\u003e \u003cp\u003eWhy Mergers and Acquisitions Fail 65\u003c\/p\u003e \u003cp\u003eSales Strategy and Process 67\u003c\/p\u003e \u003cp\u003eAcquisition Strategy and Process 78\u003c\/p\u003e \u003cp\u003eDue Diligence Preparation 86\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Measuring Synergies 91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSynergy Measurement Process 92\u003c\/p\u003e \u003cp\u003eKey Variables in Assessing Synergies 95\u003c\/p\u003e \u003cp\u003eSynergy and Advance Planning 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART III Measuring Value 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6\u003c\/b\u003e \u003cb\u003eValuation Approaches and Fundamentals 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBusiness Valuation Approaches 101\u003c\/p\u003e \u003cp\u003eUsing the Invested Capital Model to Define the Investment Being Appraised 103\u003c\/p\u003e \u003cp\u003eWhy Net Cash Flow Measures Value Most Accurately 104\u003c\/p\u003e \u003cp\u003eFrequent Need to Negotiate from Earnings Measures 106\u003c\/p\u003e \u003cp\u003eFinancial Statement Adjustments 109\u003c\/p\u003e \u003cp\u003eManaging Investment Risk in Merger and Acquisition 112\u003c\/p\u003e \u003cp\u003eConclusion 117\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Income Approach: Using Expected Future Returns to Establish Value 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Values for Merger and Acquisition Should Be Driven by the Income Approach 119\u003c\/p\u003e \u003cp\u003eTwo Methods within the Income Approach 121\u003c\/p\u003e \u003cp\u003eThree-Stage DCF Model 128\u003c\/p\u003e \u003cp\u003eEstablishing Defendable Long-Term Growth Rates and Terminal Values 131\u003c\/p\u003e \u003cp\u003eDCF Challenges and Applications 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Cost of Capital Essentials 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCost of Debt Capital 136\u003c\/p\u003e \u003cp\u003eCost of Preferred Stock 138\u003c\/p\u003e \u003cp\u003eCost of Common Stock 138\u003c\/p\u003e \u003cp\u003eFundamentals and Limitations of the Capital Asset Pricing Model 139\u003c\/p\u003e \u003cp\u003eModified Capital Asset Pricing Model 142\u003c\/p\u003e \u003cp\u003eBuild-Up Model 143\u003c\/p\u003e \u003cp\u003eSummary of Rate of Return Data 151\u003c\/p\u003e \u003cp\u003ePrivate Cost of Capital 153\u003c\/p\u003e \u003cp\u003eInternational Cost of Capital 156\u003c\/p\u003e \u003cp\u003eHow to Develop an Equity Cost for a Target Company 157\u003c\/p\u003e \u003cp\u003eReconciling Discount Rates and P\/E Multiples 159\u003c\/p\u003e \u003cp\u003eConclusion 161\u003c\/p\u003e \u003cp\u003eAppendix 8A Using Specific Company Risk Strategically 162\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Weighted Average Cost of Capital 169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIterative Weighted Average Cost of Capital Process 170\u003c\/p\u003e \u003cp\u003eShortcut Weighted Average Cost of Capital Formula 174\u003c\/p\u003e \u003cp\u003eCommon Errors in Computing Cost of Capital 176\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Market Approach: Using Guideline Public Companies and M\u0026amp;A Transactions 181\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransaction Multiple Method 182\u003c\/p\u003e \u003cp\u003eGuideline Public Company Method 186\u003c\/p\u003e \u003cp\u003eSelection of Valuation Multiples 190\u003c\/p\u003e \u003cp\u003eCommonly Used Market Multiples 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Asset Approach 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBook Value versus Market Value 200\u003c\/p\u003e \u003cp\u003ePremises of Value 201\u003c\/p\u003e \u003cp\u003eUse of the Asset Approach to Value Noncontrolling Interests 201\u003c\/p\u003e \u003cp\u003eAdjusted Book Value Method 202\u003c\/p\u003e \u003cp\u003eSpecific Steps in Computing Adjusted Book Value 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Adjusting Value through Premiums and Discounts 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApplicability of Premiums and Discounts 210\u003c\/p\u003e \u003cp\u003eApplication and Derivation of Premiums and Discounts 211\u003c\/p\u003e \u003cp\u003eApply Discretion in the Size of the Adjustment 213\u003c\/p\u003e \u003cp\u003eControl versus Lack of Control in Income-Driven Methods 215\u003c\/p\u003e \u003cp\u003eFair Market Value versus Investment Value 215\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Reconciling Initial Value Estimates and Determining Value Conclusion 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEssential Need for Broad Perspective 217\u003c\/p\u003e \u003cp\u003eIncome Approach Review 220\u003c\/p\u003e \u003cp\u003eMarket Approach Review 225\u003c\/p\u003e \u003cp\u003eAsset Approach Review 226\u003c\/p\u003e \u003cp\u003eValue Reconciliation and Conclusion 228\u003c\/p\u003e \u003cp\u003eChecks to Value 231\u003c\/p\u003e \u003cp\u003eCandidly Assess Valuation Capabilities 232\u003c\/p\u003e \u003cp\u003eValuation Scenarios – Platform for M\u0026amp;A 232\u003c\/p\u003e \u003cp\u003eAppendix 13A Disciplined and Thorough Valuation Analysis Key to Avoiding Failed M\u0026amp;A Deals 235\u003c\/p\u003e \u003cp\u003eAnalysis of a Hypothetical Synergistic Deal 235\u003c\/p\u003e \u003cp\u003eEstablishing the Value of an Acquisition Target 236\u003c\/p\u003e \u003cp\u003eEstablishing Value for the Acquirer 238\u003c\/p\u003e \u003cp\u003eConsiderations of Other Impacts on Value 239\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART IV Specialty Issues 241\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Exit Planning 243\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Is Exit Planning So Difficult? 244\u003c\/p\u003e \u003cp\u003eWhat Makes Planning for Your Private Company Investment Unique? 247\u003c\/p\u003e \u003cp\u003eWhy Should Exit Planning for Your Private Company Begin Now? 249\u003c\/p\u003e \u003cp\u003eExit Planning Process 250\u003c\/p\u003e \u003cp\u003eStep 1: Setting Exit Goals 252\u003c\/p\u003e \u003cp\u003eStep 2: Owner Readiness 254\u003c\/p\u003e \u003cp\u003eStep 3: Type of Exiting Owner 256\u003c\/p\u003e \u003cp\u003eStep 4: Exit Options 258\u003c\/p\u003e \u003cp\u003eStep 5: Range of Values 263\u003c\/p\u003e \u003cp\u003eStep 6: Execution of Exit Plan 265\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Art of the Deal 269\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnique Negotiation Challenges 269\u003c\/p\u003e \u003cp\u003eDeal Structure: Stock versus Assets 271\u003c\/p\u003e \u003cp\u003eAsset Transaction 276\u003c\/p\u003e \u003cp\u003eTerms of Sale: Cash versus Stock 279\u003c\/p\u003e \u003cp\u003ePersonal Goodwill 282\u003c\/p\u003e \u003cp\u003eBridging the Gap 283\u003c\/p\u003e \u003cp\u003eSee the Deal from the Other Side 286\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16\u003c\/b\u003e \u003cb\u003eFairness Opinions 289\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Are Fairness Opinions Obtained? 291\u003c\/p\u003e \u003cp\u003eThe Use of Fairness Opinions by Private Companies 294\u003c\/p\u003e \u003cp\u003eParties Who Prepare Fairness Opinions 295\u003c\/p\u003e \u003cp\u003eComponents of a Fairness Opinion 297\u003c\/p\u003e \u003cp\u003eWhat Fairness Opinions Are Not 301\u003c\/p\u003e \u003cp\u003eConclusion 302\u003c\/p\u003e \u003cp\u003eAppendix 16A Sample Fairness Opinion Letter 303\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 M\u0026amp;A and Financial Reporting 309\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eU.S. GAAP and IFRS 310\u003c\/p\u003e \u003cp\u003eRelevant FASB and IFRS Statements 311\u003c\/p\u003e \u003cp\u003eReviews by the Audit Firm 312\u003c\/p\u003e \u003cp\u003eASC 820: Fair Value Measurements 313\u003c\/p\u003e \u003cp\u003eASC 805: Business Combinations 315\u003c\/p\u003e \u003cp\u003eASC 350: Goodwill and Other Intangible Assets 325\u003c\/p\u003e \u003cp\u003eIncorporating ASC 805 into the Due Diligence Process 326\u003c\/p\u003e \u003cp\u003eReferences 329\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Intangible Asset Valuation 331\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApproaches to Valuing Intangible Assets 332\u003c\/p\u003e \u003cp\u003eKey Components to Intangible Asset Valuation 334\u003c\/p\u003e \u003cp\u003eIntangible Asset Valuation Methods 343\u003c\/p\u003e \u003cp\u003eConclusion 352\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Measuring and Managing Value in High-Tech Start-Ups 353\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Appraisals of High-Tech Start-Ups Are Essential 353\u003c\/p\u003e \u003cp\u003eKey Differences in High-Tech Start-Ups 355\u003c\/p\u003e \u003cp\u003eValue Management Begins with Competitive Analysis 356\u003c\/p\u003e \u003cp\u003eStages of Development 358\u003c\/p\u003e \u003cp\u003eRisk and Discount Rates 360\u003c\/p\u003e \u003cp\u003eStart-Ups and Traditional Valuation Methods 361\u003c\/p\u003e \u003cp\u003eQED Survey of Valuation Methods Used by Venture Capitalists 367\u003c\/p\u003e \u003cp\u003eA Probability-Weighted Scenario Method to Value Start-Ups 372\u003c\/p\u003e \u003cp\u003eEquity Allocation Methods 377\u003c\/p\u003e \u003cp\u003eConclusion 380\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20\u003c\/b\u003e \u003cb\u003eCross-Border M\u0026amp;A 381\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStrategic Buy-Side Considerations 381\u003c\/p\u003e \u003cp\u003eDue Diligence 390\u003c\/p\u003e \u003cp\u003eSell-Side Considerations 395\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART V Case Studies 397\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21\u003c\/b\u003e \u003cb\u003eMerger and Acquisition Valuation Case Study – Distribution Company 399\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistory and Competitive Conditions 400\u003c\/p\u003e \u003cp\u003ePotential Buyers 401\u003c\/p\u003e \u003cp\u003eGeneral Economic Conditions 402\u003c\/p\u003e \u003cp\u003eSpecific Industry Conditions 403\u003c\/p\u003e \u003cp\u003eGrowth 404\u003c\/p\u003e \u003cp\u003eComputation of the Stand-Alone Fair Market Value 404\u003c\/p\u003e \u003cp\u003eRisk and Value Drivers 409\u003c\/p\u003e \u003cp\u003eSummary and Conclusion of Stand-Alone Fair Market Value 418\u003c\/p\u003e \u003cp\u003eComputation of Investment Value 420\u003c\/p\u003e \u003cp\u003eSuggested Considerations to Case Conclusion 427\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 Merger and Acquisition Valuation Case Study –Professional Services Firm 429\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCharacteristics 429\u003c\/p\u003e \u003cp\u003eValuation Methods 433\u003c\/p\u003e \u003cp\u003eCase Study Introduction 435\u003c\/p\u003e \u003cp\u003ePotential Buyer 435\u003c\/p\u003e \u003cp\u003eHistoric Financial Performance 436\u003c\/p\u003e \u003cp\u003eFuture Expectations 439\u003c\/p\u003e \u003cp\u003eRisk and Value Drivers 443\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Method 445\u003c\/p\u003e \u003cp\u003eOther Valuation Methods to Consider 445\u003c\/p\u003e \u003cp\u003eSuggested Considerations to Case Conclusion 451\u003c\/p\u003e \u003cp\u003e\u003ci\u003eAbout the Authors 453\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eGlossary 455\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eIndex 465\u003c\/i\u003e\u003c\/p\u003e\n\u003c\/li\u003e\n\u003c\/ul\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49407056019799,"sku":"9781119433835","price":61.2,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781119433835.jpg?v=1730498017","url":"https:\/\/bookcurl.com\/products\/valuation-for-ma-9781119433835","provider":"Book Curl","version":"1.0","type":"link"}