You are previewing Financial Valuation Workbook: Step-by-Step Exercises and Tests to Help You Master Financial Valuation, 3rd Edition.
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Financial Valuation Workbook: Step-by-Step Exercises and Tests to Help You Master Financial Valuation, 3rd Edition

Book Description

The resource that cuts the learning curve in half for valuation professionals

Now valuation professionals can master almost every function for most valuation situations. The Financial Valuation Workbook, Third Edition guides readers through a complete business valuation with essential tools for quick reference.

  • Updated and expanded chapter on The Process of Preparing a Valuation- Client Workflow Procedures from initial phone call to delivery of the report

  • Expanded case study and exercises with solutions and explanations

  • Over 300 exercises organized by major areas to increase the learning process

  • This Workbook is organized by standard, easily identifiable sections that allow for easy reference by all professionals.

    Table of Contents

    1. Cover
    2. Series
    3. Title Page
    4. Copyright
    5. Dedication
    6. About the Authors
    7. Acknowledgments
    8. Preface
    9. Chapter 1: Valuation Case Study Exercises
      1. INTRODUCTION
      2. THE VALUATION REPORT
      3. INTRODUCTION
      4. NATIONAL ECONOMIC OUTLOOK 15
      5. REGIONAL ECONOMIC DATA (AS OF DECEMBER 8, 20×5)17
      6. LOCAL ECONOMY
      7. INDUSTRY OUTLOOK: WATER AND SEWER SYSTEMS 18
      8. HISTORICAL FINANCIAL ANALYSIS AND OVERVIEW OF THE COMPANY
      9. VALUATION AT FAIR MARKET VALUE
      10. LACK OF MARKETABILITY DISCOUNT
      11. RECONCILIATION OF VALUES
      12. TOTAL CONCLUSION OF VALUE ON A MARKETABLE, CONTROL INTEREST BASIS
      13. ADDENDUM: DISCOUNT CASE STUDY EXERCISES
    10. Chapter 2: Valuation Case Study Exercises: Solutions and Explanations
      1. ADDENDUM: DISCOUNT CASE STUDY EXERCISES
    11. Chapter 3: Financial Valuation: Applications and Models Companion Exercises and Test Questions
      1. CHAPTER 1: INTRODUCTION TO FINANCIAL VALUATION
      2. CHAPTER 2: STANDARDS OF VALUE
      3. CHAPTER 3: RESEARCH AND ITS PRESENTATION
      4. CHAPTER 4: FINANCIAL STATEMENT AND COMPANY RISK ANALYSIS
      5. CHAPTER 5: INCOME APPROACH
      6. CHAPTER 6: COST OF CAPITAL/RATES OF RETURN
      7. CHAPTER 7: MARKET APPROACH
      8. CHAPTER 8: ASSET APPROACH
      9. CHAPTER 9: VALUATION DISCOUNTS AND PREMIUMS
      10. CHAPTER 10: REPORT WRITING
      11. CHAPTER 11: BUSINESS VALUATION STANDARDS
      12. CHAPTER 12: VALUATION OF PASS-THROUGH ENTITIES
      13. CHAPTER 24D: VALUATION ISSUES IN PREFERRED STOCK
      14. CHAPTER 24E: RESTRICTED STOCK VALUATION
      15. CHAPTER 24G: VALUATION ISSUES RELATED TO STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION
      16. CHAPTER 13: ESTATE, GIFT, AND INCOME TAX VALUATIONS
      17. CHAPTER 14: VALUATION OF FAMILY LIMITED PARTNERSHIPS
      18. CHAPTER 24B: VALUATION ISSUES IN BUY-SELL AGREEMENTS
      19. CHAPTER 16: SHAREHOLDER DISPUTES
      20. CHAPTER 17: EMPLOYEE STOCK OWNERSHIP PLANS
      21. CHAPTER 18: VALUATION IN THE DIVORCE SETTING
      22. CHAPTER 19: VALUATION ISSUES IN SMALL BUSINESSES
      23. CHAPTER 20: VALUATION ISSUES IN PROFESSIONAL PRACTICES
      24. CHAPTER 21: VALUATION OF INTANGIBLE ASSETS
      25. CHAPTER 1: INTRODUCTION TO FINANCIAL VALUATION
      26. CHAPTER 2: STANDARDS OF VALUE
      27. CHAPTER 3: RESEARCH AND ITS PRESENTATION
      28. CHAPTER 4: FINANCIAL STATEMENT AND COMPANY RISK ANALYSIS
      29. CHAPTER 5: INCOME APPROACH
      30. CHAPTER 6: COST OF CAPITAL/RATES OF RETURN
      31. CHAPTER 7: MARKET APPROACH
      32. CHAPTER 8: ASSET APPROACH
      33. CHAPTER 9: VALUATION DISCOUNTS AND PREMIUMS
      34. CHAPTER 10: REPORT WRITING
      35. CHAPTER 11: BUSINESS VALUATION STANDARDS
      36. CHAPTER 12: VALUATION OF PASS-THROUGH ENTITIES
      37. CHAPTER 24D: VALUATION ISSUES IN PREFERRED STOCK
      38. CHAPTER 24E: RESTRICTED STOCK VALUATION
      39. CHAPTER 24G: STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION
      40. CHAPTER 13: ESTATE, GIFT, AND INCOME TAX VALUATIONS
      41. CHAPTER 14: VALUATION OF FAMILY LIMITED PARTNERSHIPS
      42. CHAPTER 24B: VALUATION ISSUES IN BUY-SELL AGREEMENTS
      43. CHAPTER 16: SHAREHOLDER DISPUTES
      44. CHAPTER 17: EMPLOYEE STOCK OWNERSHIP PLANS
      45. CHAPTER 18: VALUATION IN THE DIVORCE SETTING
      46. CHAPTER 19: VALUATION ISSUES IN SMALL BUSINESSES
      47. CHAPTER 20: VALUATION ISSUES IN PROFESSIONAL PRACTICES
      48. CHAPTER 21: VALUATION OF INTANGIBLE ASSETS
    12. Chapter 4: ValTips
      1. INTRODUCTION
      2. CHAPTER 1: INTRODUCTION TO FINANCIAL VALUATION
      3. CHAPTER 2: STANDARDS OF VALUE
      4. CHAPTER 3: RESEARCH AND ITS PRESENTATION
      5. CHAPTER 4: FINANCIAL STATEMENT AND COMPANY RISK ANALYSIS
      6. CHAPTER 5: INCOME APPROACH
      7. CHAPTER 6: COST OF CAPITAL/RATES OF RETURN
      8. CHAPTER 7: MARKET APPROACH
      9. CHAPTER 8: ASSET APPROACH
      10. CHAPTER 9: VALUATION DISCOUNTS AND PREMIUMS
      11. CHAPTER 10: REPORT WRITING
      12. CHAPTER 11: BUSINESS VALUATION STANDARDS
      13. CHAPTER 12: VALUATION OF PASS-THROUGH ENTITIES
      14. CHAPTER 13: ESTATE, GIFT, AND INCOME TAX VALUATIONS
      15. CHAPTER 14: VALUATION OF FAMILY LIMITED PARTNERSHIPS
      16. CHAPTER 16: SHAREHOLDER DISPUTES
      17. CHAPTER 18: VALUATION IN THE DIVORCE SETTING
      18. CHAPTER 19: VALUATION ISSUES IN SMALL BUSINESSES
      19. CHAPTER 20: VALUATION ISSUES IN PROFESSIONAL PRACTICES
      20. CHAPTER 21: VALUATION OF INTANGIBLE ASSETS
      21. CHAPTER 22: MARKETING, MANAGING, AND MAKING MONEY IN A VALUATION SERVICES GROUP
      22. CHAPTER 23: BUSINESS DAMAGES
      23. CHAPTER 24: OTHER VALUATION SERVICES AREAS
      24. CHAPTER 25: VALUATION OF HEALTHCARE SERVICE BUSINESSES
      25. CHAPTER 26: SPECIAL INDUSTRY VALUATIONS
    13. Chapter 5: Income Approach Valuation Process Flowchart
      1. INTRODUCTION
      2. INCOME APPROACH VALUATION PROCESS FLOWCHART
    14. Chapter 6: Marketing, Managing, and Making Money in Valuation Services
      1. SMART “MULTI-MARKETING”: HOW TO LEVERAGE YOUR EFFORTS—SELLING AND NETWORKING BEYOND ONE ON ONE
      2. RISK MANAGEMENT: ENGAGEMENT LETTERS, REPORTS, AND TURNING DOWN WORK
      3. ENGAGEMENT LETTER AND REPORT LANGUAGE EXAMPLES
      4. ASSUMPTIONS AND LIMITING CONDITIONS EXAMPLES
      5. KEEPING UP TECHNICALLY
      6. PRACTICE BENCHMARKS FOR PRODUCTIVITY, BILLINGS, REALIZATION, AND THE BOTTOM LINE
      7. FINDING, TRAINING, AND RETAINING THE RIGHT STAFF FOR YOUR PRACTICE
      8. DELEGATE LITIGATION ENGAGEMENTS TO STAFF
      9. APPENDIX 6.1: SAMPLE GIBRALTAR E-FLASH COVER SHEET
      10. APPENDIX 6.2: SAMPLE GIBRALTAR E-FLASH
      11. APPENDIX 6.3: SAMPLE CONTROL SHEET
    15. Chapter 7: Practice Management Workflow Procedures
      1. INTRODUCTION
      2. SECTION I—PRACTICE MANAGEMENT FLOWCHARTS
      3. SECTION II—PRACTICE MANAGEMENT WORKFLOW PROCESS
    16. Chapter 8: Checklists
      1. Checklist 8.1: Business Valuation or Real Estate Appraisal?
      2. Checklist 8.2: Key Information Requirements
      3. Checklist 8.3: Valuation Information Request (VIR) General
      4. Checklist 8.4: Valuation Information Request (VIR) Bank/Holding Company
      5. Checklist 8.5: Valuation Information Request (VIR) Eminent Domain
      6. Checklist 8.6: Valuation Information Request (VIR)Gas and Oil Rights
      7. Checklist 8.7: Valuation Information Request (VIR) High-Tech Business
      8. Checklist 8.8: Valuation Information Request (VIR) Professional Practice
      9. Checklist 8.9: Valuation Information Request (VIR) Medical Practice
      10. Checklist 8.10: Valuation Information Request (VIR) Construction Industry
      11. Checklist 8.11: Management Interview—Operations
      12. Checklist 8.12: Management Interview—Financial Review
      13. Checklist 8.13: Management Interview—Insurance Agency
      14. Checklist 8.14: Management Interview—Professional Practice
      15. Checklist 8.15: Management Interview—Medical Practice
      16. Checklist 8.16: Management Interview—Construction Industry
      17. Checklist 8.17: Valuation Information Request (VIR) Copyrights
      18. Checklist 8.18: Valuation Information Request (VIR) Customer Relationships
      19. Checklist 8.19: Valuation Information Request (VIR)In-Process Research and Development
      20. Checklist 8.20: Valuation Information Request (VIR) Know-How
      21. Checklist 8.21: Valuation Information Request (VIR) Patents
      22. Checklist 8.22: Valuation Information Request (VIR) Software
      23. Checklist 8.23: Valuation Information Request (VIR) Proprietary Process/Products Technology
      24. Checklist 8.24: Valuation Information Request (VIR) Trademark/Trade Name
      25. Checklist 8.25: Procedures for the Valuation of Intangible Assets
      26. Checklist 8.26: Royalty Factors
      27. Checklist 8.27: Management Interview—Patent Valuation
      28. Checklist 8.28: Revenue Ruling 59-60
      29. Checklist 8.29: Revenue Ruling 77-287: Valuation Checklist
      30. Checklist 8.30: Revenue Ruling 93-12: Valuation Checklist
      31. Checklist 8.31: Work Program
      32. Checklist 8.32: SSVS No. 1 Compliance Checklist— Valuation Engagement
      33. Checklist 8.33: SSVS No. 1 Compliance Checklist—Detailed Report (Valuation Engagement)
      34. Checklist 8.34: Review Checklist—Eminent Domain
      35. Checklist 8.35: Non-Appraiser’s Guide to Reviewing Business Valuation Reports
      36. Checklist 8.36: Auditor Review of Valuation for Financial Reporting
      37. Checklist 8.37: Fair Value Measurement Checklist
      38. Checklist 8.38: Fair Value Measurement Conclusions
    17. Index