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Financial Valuation: Applications and Models, + Website, 3rd Edition

Book Description

Real world applications and professional consensus by nationally recognized valuation experts

Filled with a wealth of detail, practice tips, and examples, Financial Valuation: Applications and Models, Third Edition brings together thirty nationally recognized names in the valuation industry hailing from a variety of professional specializations-including accounting, business appraisal, and financial analysis-to provide practitioners with an indispensable reference on various valuation issues. Assembled by valuation authority James Hitchner, these contributors analyze, explain, and collaborate on the most effective valuation procedures to share real-world applications in the field of financial valuations.

  • Written by 30 top experts in business valuations field

  • Provides the valuation theory, the consensus view on application, and then the tools to apply it

  • An all-encompassing valuation handbook that presents the application of financial valuation theory for business appraisers and consultants

  • New chapters on Assessing Risk and Expert Witness Testimony

  • Expands chapter on Cost of Capital

Comprehensive in coverage and authoritative in treatment, James Hitchner's Financial Valuation, Third Edition provides trusted, complete business valuation information for CPAs, appraisers, analysts, attorneys, and corporate executives.

Table of Contents

  1. Cover
  2. Wiley Finance Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. About the Editor
  7. About the Authors
  8. Acknowledgments
  9. Chapter 1: Introduction to Financial Valuation
    1. WHO VALUES BUSINESSES?
    2. PURPOSE OF A VALUATION
    3. PROFESSIONAL VALUATION ORGANIZATIONS
    4. STANDARDS OF VALUE
    5. FAIR MARKET VALUE
    6. INVESTMENT VALUE
    7. INTRINSIC VALUE
    8. FAIR VALUE (STATE RIGHTS)
    9. FAIR VALUE (FINANCIAL REPORTING)
    10. PREMISE OF VALUE
    11. PRINCIPLES OF APPRAISAL PRACTICE
    12. DATES
    13. APPROACHES TO VALUE
    14. VALUATION PROCEDURES
    15. SUMMARY
    16. ADDENDUM 1—VALUATION CHECKLIST/READY REFERENCE (REVENUE RULING 59–60)
    17. ADDENDUM 2—INTERNATIONAL GLOSSARY OF BUSINESS VALUATION TERMS
  10. Chapter 2: Standards of Value
    1. INTRODUCTION
    2. HOW STANDARD OF VALUE CAN AFFECT THE FINAL “NUMBER”
    3. PREMISES OF VALUE
    4. COMMON STANDARDS OF VALUE
    5. COMMON OPERATIONAL PREMISES UNDERLYING THE STANDARD OF VALUE
    6. APPLICATION OF SPECIFIC STANDARDS OF VALUE
    7. FAIR VALUE IN SHAREHOLDER DISSENT AND OPPRESSION
    8. CONTROL PREMIUMS
    9. IMMEDIATELY BEFORE
    10. UNLESS EXCLUSION WOULD BE INEQUITABLE
    11. EXTRAORDINARY CIRCUMSTANCES
    12. CURRENT AND CUSTOMARY TECHNIQUES
    13. STANDARD OF VALUE IN DIVORCE
    14. FAIR VALUE IN FINANCIAL ACCOUNTING
    15. MEASUREMENT
    16. CONCLUSION
  11. Chapter 3: Research and Its Presentation
    1. OBTAINING INTERNAL INFORMATION
    2. A DIRECTIVE FROM THE INTERNAL REVENUE SERVICE
    3. RESEARCH TECHNIQUES AND PLANNING THE SEARCH
    4. INFORMATION SOURCES: BUSINESS FINANCIAL DATABASES
    5. ECONOMIC RESEARCH
    6. SELECTED SOURCES OF ECONOMIC INFORMATION
    7. INDUSTRY RESEARCH
    8. SELECTED SOURCES OF INDUSTRY INFORMATION
    9. GUIDELINE COMPANY AND TRANSACTION RESEARCH
    10. SOURCES FOR PUBLICLY TRADED COMPANY DATA
    11. Guideline Transaction Databases
    12. PRESENTING RESEARCH IN A REPORT
    13. other sources of information
    14. SUMMARY
    15. ADDENDUM 1—VALUATION INFORMATION REQUEST (VIR) GENERAL
    16. ADDENDUM 2—MANAGEMENT INTERVIEW–OPERATIONS
    17. ADDENDUM 3—MANAGEMENT INTERVIEW–FINANCIAL REVIEW
    18. ADDENDUM 4—INDUSTRY RESEARCH FORM
  12. Chapter 4: Financial Statement and Company Risk Analysis
    1. HISTORICAL FINANCIAL STATEMENT ANALYSIS
    2. LENGTH OF FINANCIAL HISTORY TO BE USED
    3. SPREADING FINANCIAL STATEMENTS IN COLUMNAR FORMAT
    4. ADJUSTMENTS TO FINANCIAL STATEMENTS
    5. NORMALIZATION OF HISTORICAL FINANCIAL STATEMENTS
    6. UNUSUAL, NONRECURRING, AND EXTRAORDINARY ITEMS
    7. NONOPERATING ITEMS
    8. CHANGES IN ACCOUNTING PRINCIPLE
    9. NONCONFORMANCE WITH GAAP
    10. TAX AFFECTING THE EARNINGS OF SUBCHAPTERS CORPORATIONS and other adjustments
    11. DEGREE OF OWNERSHIP INTEREST
    12. NORMALIZATION ADJUSTMENTS
    13. COMMON SIZING NORMALIZED FINANCIAL STATEMENTS
    14. RATIO ANALYSIS (QUANTITATIVE ANALYSIS)
    15. COMPARATIVE ANALYSIS
    16. RISK ANALYSIS (QUALITATIVE ANALYSIS)
    17. Macroenvironmental Analysis
    18. ADDENDUM 1—COMMONLY USED FINANCIAL RATIOS: APPLICATION TO ALE’S DISTRIBUTING
  13. Chapter 5: Income Approach
    1. FUNDAMENTAL THEORY
    2. BASICS OF INCOME APPROACH—“A FRACTION”
    3. INCOME APPROACH METHODOLOGIES
    4. NORMALIZATION PROCESS
    5. ADJUSTMENTS FOR OWNERSHIP CHARACTERISTICS
    6. ADJUSTMENTS FOR GAAP DEPARTURES AND EXTRAORDINARY, NONRECURRING, AND/OR UNUSUAL ITEMS
    7. ADJUSTMENTS FOR NONOPERATING ASSETS AND LIABILITIES AND RELATED INCOME AND EXPENSES
    8. ADJUSTMENTS FOR TAXES
    9. ADJUSTMENTS FOR SYNERGIES FROM MERGERS AND ACQUISITIONS
    10. DETERMINATION OF FUTURE BENEFIT STREAM (CASH FLOWS)
    11. DEFINING THE BENEFIT STREAM
    12. NET CASH FLOW
    13. DEFINING NET CASH FLOW
    14. USE OF HISTORICAL INFORMATION
    15. THE CAPITALIZED CASH FLOW METHOD
    16. THE DISCOUNTED CASH FLOW METHOD
    17. DCF MODEL
    18. TERMINAL VALUE
    19. CAPITALIZED CASH FLOW METHOD (revisited)
    20. EXCESS CASH FLOW METHOD
    21. CONCLUSION
    22. ADDENDUM 1—APPLICATION OF THE DIRECT EQUITY METHOD (DEM) AND THE INVESTED CAPITAL METHOD (ICM)
    23. ADDENDUM 2—DEALING WITH DEBT
  14. Chapter 6: Cost of Capital/Rates of Return
    1. THREE VARIABLES
    2. CHARACTERISTICS OF COST OF CAPITAL
    3. INVESTOR EXPECTATIONS AS QUANTIFIED BY THE COST OF CAPITAL
    4. COST OF CAPITAL EQUALS DISCOUNT RATE
    5. COST-OF-CAPITAL METHODS
    6. MORE ON THE BASIC CONCEPTS
    7. DISCOUNT RATE, CAPITALIZATION RATE, AND ANTICIPATED GROWTH
    8. GROWTH
    9. RELATIONSHIP BETWEEN RISK AND COST OF CAPITAL
    10. TYPES OF RISK—ANOTHER VIEW
    11. RISKS IN A SMALL BUSINESS
    12. METHODS FOR DEVELOPING COST OF CAPITAL
    13. SIZE PREMIUMS
    14. METHODS TO ARTICULATE UNSYSTEMATIC RISK
    15. OTHER ISSUES
    16. CAPITAL ASSET PRICING MODEL METHOD
    17. DEVELOPMENT OF THE WEIGHTED AVERAGE COST OF CAPITAL
    18. PRICE/EARNINGS METHOD
    19. ADJUSTMENTS TO THE PRICE/EARNINGS RATIO
    20. ARBITRAGE PRICING THEORY
    21. RISK RATE COMPONENT MODEL FKA BUILD-UP SUMMATION MODEL
    22. COST-OF-CAPITAL ISSUES RELATED TO USE OF THE EXCESS CASH FLOW METHOD
    23. ADDENDUM 1—COST OF CAPITAL CONTROVERSIES: IT’S TIME TO LOOK BEHIND THE CURTAIN
  15. Chapter 7: Market Approach
    1. TYPE OF VALUE OBTAINED
    2. ADVANTAGES AND DISADVANTAGES OF THE MARKET APPROACH
    3. CHOOSING GUIDELINE COMPANIES
    4. BASIC IMPLEMENTATION
    5. SOURCES AND CHARACTERISTICS OF GUIDELINE COMPANY DATA AND DMDM DATA
    6. INFORMATION SOURCES
    7. MORE INFORMATION ON TRANSACTION DATABASES
    8. ADVANTAGES AND DISADVANTAGES OF THE GUIDELINE COMPANY TRANSACTION METHOD
    9. PUBLICLY TRADED COMPANIES
    10. INFORMATION SOURCES FOR INDUSTRY “COMPS”
    11. STOCK PRICES AND NUMBERS OF SHARES OUTSTANDING
    12. ADVANTAGES/DISADVANTAGES OF PUBLIC COMPANY DATA
    13. CHARACTERISTICS OF PUBLICLY TRADED COMPANIES
    14. FINANCIAL AND OTHER INDICATORS
    15. SAMPLE SIZE MATTERS
    16. COMPARABLE COMPANIES’ INFORMATION DATES
    17. BASIC FINANCIAL INDICATORS
    18. DISPLAYING THE INFORMATION
    19. ADJUSTMENTS TO THE GUIDELINE AND SUBJECT COMPANIES
    20. INCOME ADJUSTMENTS
    21. BALANCE SHEET ADJUSTMENTS
    22. EFFECTS OF ADJUSTMENTS ON VALUE
    23. CONCLUDING REMARKS ON CHOOSING COMPARABLES
    24. CALCULATING STANDARD PRICING MULTIPLES
    25. EQUITY VERSUS INVESTED CAPITAL
    26. FINANCIAL STATEMENT MEASURES
    27. COMPUTATION OF MULTIPLES
    28. MATCHING PRICE TO PARAMETER
    29. DISPERSION OF PRICING MULTIPLES
    30. APPLYING THE VALUATION MULTIPLES
    31. CONCLUDING THOUGHTS ON VALUE
    32. USING THE PRICING MULTIPLES FOR GROWTH
    33. ADJUSTING THE GUIDELINE MULTIPLES FOR SIZE
    34. SUMMARY
  16. Chapter 8: Asset Approach
    1. FUNDAMENTAL THEORY
    2. APPLICABILITY
    3. PREMISE OF VALUE
    4. CONTROL VERSUS MINORITY
    5. BUILT-IN GAINS
    6. GENERAL STEPS IN THE ASSET APPROACH
    7. VALUATION OF INDIVIDUAL ASSETS AND LIABILITIES EXAMPLE
    8. LIABILITIES
    9. UNRECORDED ASSETS AND LIABILITIES
    10. BUILT-IN GAIN
    11. CONCLUSION
    12. ADDENDUM 1A—BUILT-IN GAINS TAXES: BUSINESS VALUATION CONSIDERATIONS, PART I
    13. ADDENDUM 1B—BUILT-IN GAINS TAXES: BUSINESS VALUATION CONSIDERATIONS, PART II
    14. HOLDING COMPANIES ORGANIZED AS S CORPORATIONS
    15. ADDENDUM 2—UNDERSTANDING REAL ESTATE APPRAISALS
    16. DISTRESSED MARKETS
    17. GREEN BUILDINGS
    18. ADDENDUM 3—UNDERSTANDING MACHINERY AND EQUIPMENT APPRAISALS
    19. ADDENDUM 4—REVENUE PROCEDURE 77-12
  17. Chapter 9: Valuation Discounts and Premiums
    1. LEVELS OF VALUE
    2. CLASSIFYING DISCOUNTS
    3. DISCOUNTS FOR LACK OF CONTROL AND CONTROL PREMIUMS
    4. DISCOUNTS FOR LACK OF MARKETABILITY
    5. EMPIRICAL EVIDENCE OF MARKETABILITY DISCOUNTS
    6. DETAILED STUDIES
    7. QUANTITATIVE TOOLS
    8. OTHER DISCOUNTS
    9. ANALYSIS OF PREMIUMS ACCORDED VOTING VERSUS NON-VOTING STOCK
    10. DISCOUNTS AND PREMIUMS SUMMARY
  18. Chapter 10: Report Writing
    1. USPAP ENGAGEMENTS
    2. TYPES OF VALUATION ENGAGEMENTS AND RELATED REPORTS
    3. COMPLETE VALUATION REPORT
    4. OTHER BUSINESS VALUATION REPORTS
    5. SAMPLE REPORT
    6. ADDENDUM—SAMPLE VALUATION REPORT, VALUATION OF THE COMMON STOCK OF ACME MEASUREMENT DEVICES, INC., AS OF MAY 31, 2008
    7. Table of Contents
  19. Chapter 11: Business Valuation Standards
    1. HISTORY OF VALUATION STANDARDS
    2. GOVERNMENT ACTION
    3. ORGANIZATION OF THE USPAP STANDARDS
    4. USPAP BUSINESS VALUATION STANDARDS (2010/2011)
    5. OTHER BUSINESS VALUATION STANDARDS AND CREDENTIALS
    6. SUMMARY
    7. ADDENDUM 1—STANDARDS: A SUMMARY OF THE AICPA’S NEW BV STANDARDS
    8. ADDENDUM 2—IRS BV GUIDELINES CHECKLIST, INTERNAL REVENUE SERVICE, ENGINEERING PROGRAM, BUSINESS VALUATION GUIDELINES 4.48.4
  20. Chapter 12: Valuation of Pass-Through Entities
    1. INTRODUCTION
    2. STANDARD OF VALUE
    3. HISTORICAL BACKDROP
    4. CURRENT STATUS OF DEBATE
    5. CONTROLLING INTERESTS IN PASS-THROUGH ENTITIES
    6. CONTROLLING-INTEREST STUDIES
    7. SUMMARY: CONTROLLING INTERESTS IN PASS-THROUGH ENTITIES
    8. TAX RATES
    9. NONCONTROLLING INTERESTS IN PASS-THROUGH ENTITIES
    10. TREHARNE MODEL
    11. VAN VLEET MODEL
    12. MERCER MODEL
    13. THE QUANTITATIVE MARKETABILITY DISCOUNT MODEL
    14. GRABOWSKI MODEL
    15. SUMMARY: NON-CONTROLLING INTEREST IN PASS-THROUGH ENTITY THEORY
    16. ADDENDUM—A SUMMARY APPROACH TO PTE VALUATION
  21. Chapter 13: Estate, Gift, and Income Tax Valuations
    1. VALUATIONS IN ESTATE AND GIFT TAXES
    2. SELECTED INTERNAL REVENUE CODE PROVISIONS
    3. SELECTED TREASURY REGULATIONS
    4. SELECTED REVENUE RULINGS
    5. VALUATIONS FOR INCOME TAXES
    6. ADDENDUM—VALUATION CHECKLISTS/READY REFERENCE (REVENUE RULINGS 59-60, 77-287, AND 93-12)
  22. Chapter 14: Valuation of Family Limited Partnerships
    1. FAMILY LIMITED PARTNERSHIP USES
    2. TAX ADVANTAGES
    3. HOW FAMILY LIMITED PARTNERSHIPS ARE FORMED
    4. OTHER CHARACTERISTICS OF FAMILY LIMITED PARTNERSHIPS
    5. STATE LAW, PROPERTY RIGHTS, AND THEIR IMPORTANCE TO THE VALUATION PROCESS
    6. IMPROPER FORMATION CAN CREATE PROBLEMS FOR PARTNERS
    7. VALUATION OF FAMILY LIMITED PARTNERSHIP INTERESTS
    8. NEW DEVELOPMENTS IN CHAPTER 14
    9. TIERED DISCOUNTS
    10. ILLUSTRATIVE CASE STUDY
  23. Chapter 15: Summary of Tax Court Cases Issues
    1. TAX CASES
    2. WEB ADDENDUM 1—CURRENT TAX COURT CASES OF INTEREST AT www.wiley.com/go/FVAM3E
  24. Chapter 16: Shareholder Disputes
    1. HISTORY OF SHAREHOLDER DISPUTES
    2. CAUSES OF ACTION
    3. STANDARD OF VALUE
    4. VALUATION DATE
    5. FUTURE APPRECIATION OR DEPRECIATION
    6. ENTIRE FAIRNESS
    7. VALUATION METHODOLOGY
    8. VALUATION ADJUSTMENTS
    9. RECENT COURT CASE
    10. COURT CASE CAVEATS
    11. CONCLUSION
  25. Chapter 17: Employee Stock Ownership Plans
    1. INTRODUCTION TO EMPLOYEE STOCK OWNERSHIP PLANS
    2. NEED FOR VALUATION SERVICES
    3. FEASIBILITY OF AN ESOP
    4. HOW ESOPS ARE USED
    5. SECURITY LAWS AND THE ESOP
    6. TAX ADVANTAGES OF ESOPs
    7. DIFFERENCES IN ENTITY STRUCTURE
    8. IMPORTANT DIFFERENCES IN SHARE OWNERSHIP (ESOP VERSUS OTHER)
    9. ADEQUATE CONSIDERATION: HOW AND WHY IT WORKS
    10. ESOPs AND PLAN CONTRIBUTIONS
    11. GENERAL CONSIDERATIONS FOR ESOP LOANS
    12. ESOPs THAT INCLUDE DEBT
    13. ACCOUNTING STANDARDS AND ESOPs WITH DEBT
    14. SECTION 415 LIMITS
    15. CRITERIA FOR VALUING ESOP SHARES
    16. END-OF-YEAR AND MID-YEAR CONVENTIONS
    17. Considerations in the Calculation of the Terminal Value
    18. ADJUSTMENTS FOR LACK OF MARKETABILITY
    19. ADJUSTMENTS FOR CONTROL OR LACK OF CONTROL—MINORITY INTEREST
    20. VOTING AND OTHER RIGHTS OF THE ESOP SHAREHOLDERS
    21. REPURCHASE REQUIREMENT, THE PUT RIGHT—WHAT AND HOW TO DEAL WITH IT?
    22. PENALTIES FOR AN IMPROPER VALUATION
    23. VALUATION CONCLUSION: WRITING A CONCLUSION
    24. ADDITIONAL INFORMATION
    25. INFORMATION SOURCES
  26. Chapter 18: Valuation in the Divorce Setting
    1. STANDARDS OF VALUE IN DIVORCE
    2. PREMISE OF VALUE—GOING CONCERN
    3. PREMISE OF VALUE—LIQUIDATION
    4. GOODWILL—THE BATTLEGROUND FOR DIVORCE VALUATIONS
    5. DEFINING GOODWILL
    6. STATE INTERPRETATIONS ON INCLUDING GOODWILL IN THE MARITAL ESTATE
    7. PERSONAL VERSUS ENTITY (enterprise) GOODWILL
    8. DIVIDING GOODWILL INTO PERSONAL AND ENTITY COMPONENTS
    9. APPLYING THE FACTORS TO SEPARATE GOODWILL
    10. ROLE OF NONCOMPETE AGREEMENTS IN DETERMINING PERSONAL VERSUS ENTITY GOODWILL
    11. PERSONAL GOODWILL IN COMMERCIAL BUSINESSES
    12. VALUATION OF THE S CORPORATION AND OTHER PASS-THROUGH ENTITIES IN DIVORCE VALUATIONS
    13. RESTRICTIONS ON DATA
    14. RANGE VERSUS SPECIFICITY
    15. PROFESSIONAL STANDARDS IN A DIVORCE SETTLEMENT
    16. ROLE OF standards
    17. STATEMENT ON STANDARDS FOR VALUATION SERVICES NO. 1 (AICPA)
    18. OTHER STANDARDS
    19. DAUBERT CHALLENGES IN DIVORCE
    20. VALUATION METHODOLOGY AND THE APPLICATION OF DISCOUNTS IN DIVORCE VALUATIONS
    21. AVOID DOUBLE COUNTING
    22. WHEN AN INTEREST is CONSIDERED CONTROL IN A DIVORCE SETTING
    23. FAMILY AGGREGATIONS IN DIVORCE SETTINGS
    24. PARTNERSHIPS, LLCs, LLPs, AND FAMILY ENTITIES IN A DIVORCE SETTING
    25. LIQUIDITY MYTH IN PASS-THROUGH ENTITIES
    26. DIVORCE VALUATION AND BANKRUPTCY
    27. SUMMARY
  27. Chapter 19: Valuation Issues in Small Businesses
    1. WHAT IS A SMALL BUSINESS?
    2. FINANCIAL STATEMENT ADJUSTMENTS
    3. QUALITATIVE FACTORS AFFECTING VALUE
    4. VALUATION METHODS
    5. REASONABLENESS TESTS
    6. SUMMARY
  28. Chapter 20: Valuation Issues in Professional Practices
    1. TYPES OF PRACTICES
    2. PURPOSE OF VALUATION
    3. PROFESSIONAL GOODWILL AND PRACTICE GOODWILL
    4. SELECT CASE LAW FOR MARITAL DISSOLUTION
    5. FACTORS AFFECTING VALUE
    6. FINANCIAL STATEMENT ADJUSTMENTS
    7. VALUATION METHODS
    8. SUMMARY
    9. ADDENDUM 1—Management Interview Medical Practice (Sample)
    10. ADDENDUM 2—Management Interview Law Practice (Sample)
    11. ADDENDUM 3—Management Interview Accounting Practice (Sample)
  29. Chapter 21: Valuation of Intangible Assets
    1. INTRODUCTION
    2. WHAT ARE INTANGIBLE ASSETS?
    3. WHY INTANGIBLE ASSETS ARE DIFFICULT TO MEASURE
    4. THE NATURE OF INTANGIBLE ASSETS
    5. IDENTIFICATION AND CLASSIFICATION OF INTANGIBLE ASSETS
    6. MEASUREMENT OF INTANGIBLE ASSETS
    7. BUSINESS COMBINATIONS
    8. THE ACQUISITION METHOD
    9. INTANGIBLE ASSET VALUATION ISSUES
    10. NATURE OF GOODWILL
    11. FINANCIAL REPORTING DISCLOSURES—SELECTED DISCLOSURE REQUIREMENTS
    12. CASE STUDY: DETERMINING THE VALUE OF GOODWILL AND OTHER INTANGIBLE ASSETS IN A BUSINESS COMBINATION
    13. ADDENDUM 1—FAIR VALUE
    14. ADDENDUM 2—Intellectual Property
  30. Chapter 22: Marketing, Managing, and Making Money in a Valuation Services Group
    1. PURPOSE AND OVERVIEW
    2. WHAT GOOD ECONOMICS LOOKS LIKE
    3. OPERATIONAL KEYS FOR GOOD ECONOMICS
    4. KEY ENGAGEMENT PRINCIPLES
    5. ENGAGEMENT ACCEPTANCE PROCESS
    6. FEES, RETAINERS, BILLING, AND COLLECTION
    7. ENGAGEMENT CONTROL
    8. LITIGATION SERVICES’ ENGAGEMENTS
    9. CONCLUSION
  31. Chapter 23: Business Damages
    1. ROLE OF THE LAW AND FINANCIAL EXPERTS
    2. LEGAL PRINCIPLES GOVERNING DAMAGES
    3. EXCLUSIONS BASED ON INSUFFICIENT FACTS AND DATA—FAILURE TO PROVIDE INDEPENDENT ANALYSIS
    4. ADMISSIBILITY OF EXPERT OPINIONS
    5. MEASURE OF DAMAGES: DIMINUTION OF VALUE OR LOST PROFITS
    6. DIFFERENCES BETWEEN DAMAGE COMPUTATIONS AND BUSINESS VALUATIONS
    7. CAN BUSINESS DAMAGES EXCEED THE FAIR MARKET VALUE OF THE BUSINESS?
    8. CONCLUSION
  32. Chapter 24: Other Valuation Services Areas
    1. A: VALUATIONS FOR PUBLIC COMPANIES AND/OR FINANCIAL Reporting
    2. B: VALUATION ISSUES IN BUY-SELL AGREEMENTS
    3. C: VALUING DEBT
    4. D: VALUATION ISSUES IN PREFERRED STOCK
    5. E: RESTRICTED STOCK VALUATION
    6. F: VALUATION OF EARLY-STAGE TECHNOLOGY COMPANIES
    7. G: VALUATION ISSUES RELATED TO STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION
    8. H: REAL OPTION VALUATIONS
    9. I: MAXIMIZING SHAREHOLDER VALUE
    10. ADDENDUM 1—RATES OF RETURN FOR HIGHER-RISK COMPANIES
  33. Chapter 25: Valuation of Healthcare Service Businesses
    1. INDUSTRY BACKGROUND AND TRANSITION
    2. HEALTHCARE INDUSTRY’S UNIQUE ATTRIBUTES
    3. OVERVIEW OF CONSIDERATIONS FOR VALUING HEALTHCARE ENTITIES
    4. VALUATION PROCESS
    5. CONTROL PREMIUMS AND MINORITY DISCOUNTS
    6. DISCOUNTS FOR LACK OF MARKETABILITY
    7. Valuation Issues for Specific Healthcare Industry Niches
    8. PUBLIC AND PRIVATE HEALTHCARE SERVICES COMPANIES BY NICHE
    9. ADDENDUM 1—Rocky Surgery Center, LP
    10. ADDENDUM 2—Valuation of Paulie Hospital
  34. Chapter 26: Special Industry Valuations
    1. A: CONSTRUCTION
    2. B: RADIO
    3. C: CABLE TV
    4. D: Restaurants
    5. E: BARS AND NIGHTCLUBS
  35. Chapter 27: Valuation Views and Controversial Issues: An Illustration
    1. THE REPORT
    2. INTRODUCTION
    3. NATIONAL ECONOMIC OUTLOOK
    4. REGIONAL ECONOMIC DATA (AS OF DECEMBER 8, 20X5)
    5. LOCAL ECONOMY
    6. INDUSTRY OUTLOOK
    7. FINANCIAL ANALYSIS OF THE COMPANY
    8. APPRAISAL OF FAIR MARKET VALUE
    9. LACK OF MARKETABILITY DISCOUNT
    10. CORRELATION OF VALUES
    11. TOTAL CONCLUSION OF VALUE ON A MARKETABLE, CONTROL BASIS
  36. Index