Business Valuation For Dummies is filled with expert guidance that business owners, managers at all levels, investors, and students can use when determining the value of a business. It contains a solid framework for valuation, including advice on analyzing historical performance, evaluating assets and income value, understanding a company's financial statements, estimating the cost of capital, business valuation models, and how to apply those models to different types of businesses.
Your hands-on guide to calculating - and understanding - business value
Want to determine the value of a business, but not sure where to start? This plain-English guide gives you step-by-step directions for the major valuation methods, supporting them with real-world examples. You'll work with easy-to-understand valuation models and apply them to different types of businesses to achieve the fairest, most affordable valuation solution.
* Business valuation 101 - learn what it is, why it's a challenge, and the approaches that experts take to uncover value (or the lack of it)
* Grasp key valuation tools - understand valuation reports, financial statements, and "rule of thumb" guidelines for specific businesses
* Get to the heart of it - analyze historical performance, evaluate assets and income value, and estimate cost of capital
* If you're selling a business - see how to conduct due diligence and increase your company's value
* If you're buying a business - incorporate valuation into the necessary prep before negotiation
* Seek help from the experts - from divorce to estate planning to attracting outside investors, know when and why you should get outside valuation help
Open the book and find:
* Real-world advice on planning and executing valuation
* The role of the supporting players in the valuation process
* Detailed case studies on buying and selling businesses
* How forensic accounting fits into valuation
* The soft and hard skills needed for successful valuation
* What to build into a partnership agreement
* Why you should pause before transforming your company into an ESOP
