Customer Reviews

A Basic Guide for Valuing a Company

5 star:		(2)
4 star:		(2)
3 star:		(2)
2 star:		(1)
1 star:		(1)

 

 

The title of the book is very explicit, "A Basic Guide", If you are looking for a general explanation about the valuation process and you are a bussiness related person, you will easily understand this book. It explain a new concept in valuation named "Hybrid Method", which is an interesting author's theory. But, if you are looking for a deep technical detail about this topic I recommend "Valuation" of McKinsey & Co.

Although his work on valuation techniques is straightforward in later chapters, the 1st several chapters do not do an adequate job of explaining the psychology of business valuation, buying or selling or the 'intangible' of business value. Words such as 'steeds' and 'pestilence' belong in literature, not reference manuals. Are Cliff Notes available to decipher just what these chapters are trying to communicate? I am trying to buy a business;lots of hard work lay ahead. Why must this book start off so unclear?

In preparation to sell my business for appx $10MM I sought many references on how to make a professional presentation and and use methodology that would be reasonable and logical to lead to a sale. Wilbur has doen a great job with this and his other book, How To Sell A business. I recommend that anyone read there two before putting a package together. I have had many favorable comments from both principals and brokers concerning the structure of the presentation I was able do make using Wilbur's help.

Just what I needed as a small business owner who needed a basic understanding of both the art and the science of valuing my company. Heavier read than it looks, since I didn't needed to know everything about non-related businesses. I did need to know how what factors must be considered and how complex some deals could be. Yegge speaks from experience and that is obvious, helpful and most comforting.

Will Yegge has the unique ability of being able to present a difficult subject in a logical, intelligent, concise and interesting manner.

Even though I have no background whatsoever in accounting, I was able to follow the information in this book and use it as my primary guide in valuing a company that I was interested in purchasing. It is a great resource for novices.

After looking over several other similar titles I decided on this. I am glad I did. The first section of the book which presents the basics of Yegge's valuation system is worth reading twice. The second section, a series of teaching examples, can be skimmed. Then read the last chapter. This book shows that business valuation, after the usual multiple of recastable earnings, is highly subjective. And, that this subjectivity can't be taught easily.

Good overview of valuation concepts, but if you want to sit down and actually come up with a number, try "Unlocking the Value of Your Business".

This seems to be a fairly narrow treatment - not very helpful, nor easy to read. A much better book is "Unlocking the Value of Your Business."