Valuing a Business, 5th Edition: The Analysis and Appraisal of Closely Held Companies

by Robert F. Reilly, Robert P. Schweihs, Shannon P. Pratt

Book Overview

The book serves three purposes: a comprehensive reference and update for currently active business appraisers, a complete self-contained text for both academic courses and beginning practitioners, and... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0071441808
• ISBN13: 9780071441803
• Release Date: January 2008
• Publisher: McGraw-Hill Companies
• Length: 1152 Pages
• Weight: 5.85 lbs.
• Dimensions: 1.8" x 8.9" x 11.3"

Customer Reviews

This is a Terrific Resource for Practitioners Not Investors

I am a lawyer who has tried valuation cases and this book is a terrific resource for valuation experts and attorneys. I used it to defend and to attack witnesses. It is respected. It is used at the Federal Judicial Center as training for judges on these issues. It is not at all appropriate for people who are trying to value companies for investment purposes.

An Excellent Private Equity Valuation Primer

I have found Mr. Pratt's book to be an outstanding and practical general reference guide to valuing privately-held businesses. Due to the book's breadth of material and balanced focus on both the science and art of valuation, I have found "Valuing A Business" to be an excellent professional reference for anyone entering the field of business valuation. I highly recommend it.In addition to the common "science side" valuation techniques, issues, and approaches that are found in many valuation textbooks, Pratt provides unique, valuable insight into the "art side" of valuation. The book also includes real life project execution considerations for litigation support, expert witness testimony, and taxation. "Valuing A Business" offers solid information to assist a practitioner in building a quality framework for conducting a comprehensive private company valuation.

Good technique, directed at the professional practitioner

I take issue with the reviewer who suggested that Tom Copeland/McKinsey's book "Valuation" is better than this one or is more directed at valuaing big businesses. ... On the other hand, it should be said that valuation techniques do not differ between big companies and small companies (especially if big/small companies are publically traded). Valuation techniques vary depending on (a) what sort of asset is being valued (public equity, vs. private equity, vs. business assets as a whole, etc) and (b) why valuation is being done (for M & A, litigation between business partners, divorce, ESOPs, for equity investment/divestment). If an investor is valuing a $50 Billion public company and a $50 million public company, the technique used for both is (probably) the same. If anything, this book does an excellent job in reminding us of the diversity of valuation techniques in use, and the diversity of reasons for doing valuations. Given the frequency with which privately held companies are bought, one would think that knowing how to value companies whose stock is not publically traded is useful for general businesspeople, not just accountants and attorneys. But if you absolutely insist that you just want to know how to value publically traded companies and don't give a hoot for calculating "private equity discounts" or "minority shareholder discounts", then I would recommend Aswath Damodaran's books "Damodaran on Valuation", "The Dark Side of Valuation" or "Investment Valuation". Damodaran, professor of Finance at NYU, actually uses the same techniques taught here, but applied to public equity investing and with different names (for example, what is called the "Market approach" here is just what Damodaran calls "relative valuation" in a different context).

Excellent, comprehensive, helpful

I used this book a lot as an intern with investment bankers; massive, truly massive; believe me, there's a lot you don't know! I highly recommend it.

Outstanding Work

I used this book frequently while pursuing my MBA (completed Dec 98). I would highly recommend this book for any student of Accounting or Finance. The author presents the most commonly accepted methods for valuating closely held companies in a cogent and understandable manner. While a few readers may desire a more detailed and mathematical explanation of valuation procedures, most readers will find the book satisfactory for their purposes.