From the Inside Flap
There is too much mystery about what companies are worth. And there are too many bad investment and operational decisions made as a result. The problem is especially acute in the case of a private company that lacks the guidance of a stock market price. But accurate valuations are possible, and M&A deals can succeed for both buyers and sellers.
The authors of this book have provided valuation advisory services to hundreds of companies and thousands of corporate executives. Through their experience, they have developed techniques to accurately measure and successfully build value in companies. In Valuation for M&A: Building Value in Private Companies, they provide owners and managers of private companies and their prospective buyers with the tools to determine what their company's value is, what drives that value, and how to enhance that value during an M&A and in daily operation-even when no stock price exists.
Written for business appraisers, CPAs, investment bankers, venture capitalists, and consultants, as well as for investors and managers of nonpublicly traded entities, this book is a toolkit of solutions for valuation and return on investment questions. It is also a road map to building value when operating a company and selling or buying one. Senior managers in most public companies focus on value every day, for their performance is reflected in the daily scorecard of their stock price. But private companies lack this market feedback. As a result, many private companies lack direction and underperform.
Valuation for M&A lays out the steps for measuring and managing value creation in nonpublicly traded entities, and helps investors, executives, and their advisors determine the optimum strategy to enhance both market value and strategic value and maximize return on investment. It provides a detailed guide for sellers and buyers to prepare for the sale and acquisition of a firm, spelling out how to identify, quantify, and qualify the synergies that increase value to strategic buyers.
Complete with a comprehensive case study to illustrate concepts and calculations, Valuation for M&A fills a gap that has long stymied both sides of the M&A equation, handing owners, managers, and strategic buyers the first effective methodology for measuring and building the value of a private company and ensuring that everyone gains the maximum benefit from the deals they make.
From the Back Cover
Praise for Valuation for M&A
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"Clearly written, with extensive but easy-to-follow exhibits to illustrate points in the text. It covers everything from setting criteria and conducting the search for targets or acquirers, through several chapters on valuation, to a chapter on 'The Art of the Deal'."-Shannon P. Pratt, CFA, FASA, MCBA, Managing Director, Willamette Management Associates
"[An] easy read. Covered like no book before it, simplified by experts!"-Lawrence W. Newman, Senior Vice President and Chief Financial Officer, Underwriters Laboratories Inc.(r)
"A solid contribution to the valuation profession . . . excellent job of addressing the many unique issues that arise in M&A. . . Two thumbs up!"-Jay B. Abrams, ASA, CPA, Abrams Valuation Group
"Provides an excellent roadmap for the M&A process and focuses on the elements critical to building value in private businesses . . . Don't enter into a negotiation without reading this!"-Z. Christopher Mercer, ASA, CFA, Chief Executive Officer, Mercer Capital Management, Inc.
"A must read for managers of private companies intent on creating value. Combining academic rigor with real-world experience ...A superb addition to the growing literature on value-based management."-Kenneth M. Lehn, Professor of Business Administration, Katz Graduate School of Business, University of Pittsburgh, Chair of the Samuel A. McCullough Finance Department, Former Chief Economist at the U.S. Securities and Exchange Commission