This review provides a focused overview of the entire body of knowledge necessary to pass the examination leading to a professional designation in the field of business appraisal. Written by one of the five leading gurus in business evaluation, this is a self-contained workbook in outline form comprising definitions, word problems, multiple-choice questions, and in-depth explanations.
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Business Valuation Body of Knowledge, Second Edition brings together the essentials of the core knowledge of business valuation as taught today by the leading professional associations. It provides both a study guide for those seeking business valuation certification (ABV, ASA, CBA, and CVA) as well as a reference guide for day-to-day use by practitioners.
Shannon Pratt, one of the foremost authorities on the subject, emphasizes the valuation of closely held businesses and interests throughout, but much of the material is also applicable to publicly traded companies. The book begins by describing the legal and professional environment in which business valuation typically takes place, presenting a glossary of terms and the mathematical notation commonly used. The core of the book presents valuation approaches and methods, followed by company, industry, and economic analysis. Business Valuation Body of Knowledge also includes an extensive case study to demonstrate valuation practices in action and discusses how valuation methods may differ for different purposes-tax matters, employee stock ownership plans (ESOPs), shareholder disputes, etc. For the practitioner seeking accreditation, the book:
* Outlines the topics generally covered in accreditation exams, providing a review of the basics
* Identifies where topics are covered in each organization's materials and reference books
For the experienced practitioner, the book:
* Reviews the current rulings and professional positions on basic business valuation topics
* Provides a time-saving source to other references, with various views on basic topics
* Serves, in case of litigation, as a guide to help ensure that basic considerations have not been overlooked, and includes sources for positions on controversial issues
For readers interested in further targeted study, the author includes references to Internal Revenue Service publications, professional standards, texts, and courses on each subject. Candidates seeking ABV, ASA, CBA, or CVA certification, as well as practitioners in need of a day-to-day reference, will find Pratt's authoritative guide to be the premier resource in the field.