Customer Reviews

Business Valuation Bluebook, How Entrepreneurs Buy, Sell and Trade

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Out of 244 pages, only about 20 of them deal with valuation calculation. Most of the book is basic accounting vocabulary. The sections dealing with valuation don't leave you thinking that you could actually put together a reasonable estimate of business value, and most of the valuation models require the use of a very subjectively computed Risk Price Multiple (RPM). Some good information, but overall I would recommend seeking an another resource.

This book is a very basic, readable overview of small business valuation, which primarily offers the underlying theories and reasons behind different business valuation methods. It also includes a discussion of why one should be considering purchasing a small business in the first place. It does not include actual formulas or calculations that one would need for creating a specific value for a business, but rather gives you a working understanding of how small businesses are valued.

If you would like a fairly enjoyable read on the basics of small business valuation theory then this book makes a good choice. If you are trying to come up with an actual value for a specific business, look elsewhere.

very poor book. Evaluation is wrong, according to this method companies will be overpriced by at least 50%. Example in the book is very bad - company which make 13000 per year cash flow plus 18000 owner's salary (my 18 years old girl make more than that) can not worst 180000 dollars, I doubt that it worst 50000. Plus author even doesn't know what is FREE CASH FLOW mean (high school economics).
Books like this harm the industry because set unrealistic expectation and businesses stuck in listing for years and never will be sold