Valuation for M&A: Building Value in Private Companies

by David M. Bishop and Frank C. Evans

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...

• Format: Hardcover
• Language: English
• ISBN: 0471411019
• ISBN13: 9780471411017
• Release Date: September 2001
• Publisher: John Wiley & Sons
• Length: 312 Pages
• Weight: 0.10 lbs.
• Dimensions: 1.0" x 6.5" x 9.3"

Customer Reviews

Practical, accurate, hands-on book

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.

"How-To" Apply Solid Valuation Theory

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.

Must read for business owners, valuators and M & A people

I am a professional business valuator and had a good understanding of the valuation process before I read this book. However, I did not know much about mergers & acquisitions (M & A). After reading "Valuation for M & A" I not only gained a clear understanding about M & A, but I got many additional insights into valuation work as well! Mr. Evans and Mr. Bishop break their book down into 16 well constructed chapters that take you through valuations for M & A step by step, with each step building on the previous one. They then tie it all together at the end of the book and provide an excellent case study as a bonus. The case study alone is worth the price of the book. This is a must read for business valuators, M & A professionals and business owners thinking about buying a new business or selling the one they own now.

Perfect for these times

This is the definitive text available today on the subject of vauation of businesses for purposes of merger or acquisitons. It is a valuable guide for business appraisers and business owners who are seeking to sell their business or groom it for acquistion by another comany. The section on how to build value in a company for later sale is alone in the literature. The book is written for all readers, and the authors are themselves business-owners and appraisers. I will use this text regularly in my own practice, especially in the analysis of synergy value.