Valuing a Business : The Analysis and Appraisal of Closely Held Companies (3rd Edition) [Hardcover]

Shannon P. Pratt (Author), Robert F. Reilly (Author), Robert P. Schweihs (Author)

Book Description

Series: Valuing a Business, 3rd ed. the Analysis and Appraisal of Closely Held Companies | Publication Date: October 1995

Valuing A Business, Third Edition is an indispensable reference for anyone involved with the valuation of a business or a business interest. With 35,000 copies sold in previous editions, it is revered as one of the most comprehensive and classic pieces on the subject of business valuation. The book serves three purposes: A comprehensive reference and update for active business appraisers; A complete, self-contained text for both academic courses and beginning practitioners; An easy-to-use reference for nonappraisers who use and/or evaluate business appraisals. Greater emphasis is placed in this edition on users of business appraisals, especially judges, attorneys, business owners, and fiduciaries. The concepts of conformance of legal standards of value in different valuation contexts is carried throughout the book. There are more references to court case procedents and regulatory agency pronouncements on various valuations issues.

Editorial Reviews

From the Back Cover

Valuing a Business 4th Edition The Analysis and Appraisal of Closely Held Companies Shannon P. Pratt, Robert F. Reilly, Robert P. Schweihs

The Business World’s Most Accurate and Indispensable Valuation Reference—Updated for a New Century and Business Environment

First published in 1981, Valuing a Business by Shannon P. Pratt, Robert F. Reilly, and Robert P. Schweihs has become today’s standard business valuation reference. Look to this substantially revised, completely updated Fourth Edition for in-depth, authoritative coverage that includes: • Credentials and Standards • Theory and Principles • Gathering Company, Industry, and Economic Data • Analyzing Financial Statements • Business Valuation Approaches and Methods: Income, Market, and Asset-Based • Control and Acquisition Premiums • Lack of Marketability, Lack of Control, and Other Discounts • Writing and Reviewing Valuation Reports • Valuing Debt Securities, Preferred Stock, Stock Options, and Pass-Through Securities • Valuations for Specific Purposes: Estate and Gift Tax, Buy-Sell Agreements, Income Tax, Employee Stock Ownership Plans, Ad Valorem Taxation, Dissenting Stockholder, Minority Oppression, Marital Dissolution • Litigation Support • Expert Witness Testimony • Arbitration and Mediation
Comprehensive in coverage and authoritative in treatment, Valuing a Business is recognized worldwide as an unquestionable resource for business valuation information. With this updated edition, it maintains its role as the standard reference for defining the methodology of business valuation—for businesses of all sizes—and then arriving at an accurate and supportable estimation of value.

[FLAP COPY] Valuing a Business 4th Edition The Analysis and Appraisal of Closely Held Companies Shannon P. Pratt, Robert F. Reilly, Robert P. Schweihs

For nearly two decades, and through three previous editions, Valuing a Business has provided trusted, complete business valuation information for experienced business valuation analysts, beginning analysts and students, and all professionals needing complete valuation information. Its clear, concise explanations of valuation methods and conclusions have made it the classic text against which all other valuation books are measured. Valuing a Business, 4th edition, continues this tradition of excellence into the 21st century. Shannon P. Pratt, Robert F. Reilly, and Robert P. Schweihs once again deliver a well-crafted package of updated information and application, carefully balancing the art and science of business appraisal as they provide no-nonsense guidelines for successfully completing any business valuation assignment. An emphasis on court cases throughout the guide provides firsthand examples of valuation in action. Extensively reworked and rewritten, this landmark book widens its focus to encompass:
• The growing consensus regarding business appraisal professional standards
• Updated valuation court case decisions
• Expanded data sources, especially for the market approach
• Valuation of stock options
• Arbitration and mediation
• Discounts and premiums
• International Glossary of Business Valuation Terms

While other books focus on particular valuation situations and questions, only Valuing a Business explores and answers every facet of virtually every business valuation question. As new technologies and practices breed rampant changes in the nature and structure of business worldwide, let the respected Pratt/Reilly/Schweihs team keep you current with the revised and updated Valuing a Business, 4th edition. From identifying and clearly defining the purpose of the valuation assignment through the use of arbitration or mediation to settle disputes, it remains today’s most complete business valuation resource—and a necessary addition to any business library.

About the Authors Shannon P. Pratt, DBA, Robert F. Reilly, MBA, and Robert P. Schweihs, MBA, are managing directors of Willamette Management Associates, one of the oldest and largest independent valuation consulting, economic analysis, and financial advisory firms in the country. Dr. Pratt, a chartered financial analyst, fellow of the American Society of Appraisers, and life member of the Institute of Business Appraisers, is also editor-in-chief of the monthly newsletters Shannon Pratt’s Business Valuation Update and Judges & Lawyers Business Valuation Update. Mr. Reilly is an accredited senior appraiser (certified in business valuation), certified business appraiser, chartered financial analyst, certified public accountant (accredited in business valuation), certified management accountant, and state-certified affiliate of the Appraisal Institute. He currently serves as an editor and contributor to such professional journals as The American Bankruptcy Institute Journal and The Journal of Property Tax Administration. Mr. Schweihs, an accredited senior appraiser of the American Society of Appraisers (certified in business valuation), is a trustee of The Appraisal Foundation and is a frequent expert witness in valuation court cases and speaker to professional societies. Among them, the three have written or edited numerous professional valuation books, including Valuing Small Businesses and Professional Practices, Valuing Intangible Assets, The Handbook of Advanced Business Valuation, and Judges & Lawyers Business Valuation Handbook. --This text refers to an out of print or unavailable edition of this title.

About the Author

Shannon P. Pratt, Robert F. Reilly and Robert P. Schweihs are Managing Directors and founders of Williamette Management Associates, a Portland-based firm specializing in Valuation. Williamette Management Associates is one of the oldest and largest independent valuation consulting firms in the countr. Pratt holds a doctorate in finance from Indiana Universit and is a fellow of the American Societ of Appraisers. Reilly is an accredited senior appraiser, a chartered financial analyst, a certified public accountant, a certified management accountant, an accredited tax advisor and a certified general appraiser. Schweihs holds a masters of business administration degree from the University of Chicago. He is an accredited senior appraiser of the American Societ of Appraisers and is a frequent speaker to professional societies. --This text refers to an out of print or unavailable edition of this title.

Product Details

• Hardcover: 850 pages
• Publisher: Irwin Professional Pub; 3rd edition (October 1995)
• Language: English
• ISBN-10: 1556239718
• ISBN-13: 978-1556239717
• Product Dimensions: 11 x 9 x 2 inches
• Shipping Weight: 4.8 pounds
• Average Customer Review: 3.3 out of 5 stars  See all reviews (12 customer reviews)
• Amazon Best Sellers Rank: #877,455 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

29 of 30 people found the following review helpful:

4.0 out of 5 stars Good technique, directed at the professional practitioner, October 18, 2001

By 

"cued" (San Diego, CA) - See all my reviews

This review is from: Valuing A Business, 4th Edition (Hardcover)

I take issue with the reviewer who suggested that Tom Copeland/McKinsey's book "Valuation" is better than this one or is more directed at valuaing big businesses. ... On the other hand, it should be said that valuation techniques do not differ between big companies and small companies (especially if big/small companies are publically traded). Valuation techniques vary depending on (a) what sort of asset is being valued (public equity, vs. private equity, vs. business assets as a whole, etc) and (b) why valuation is being done (for M&A, litigation between business partners, divorce, ESOPs, for equity investment/divestment). If an investor is valuing a $50 Billion public company and a $50 million public company, the technique used for both is (probably) the same.

If anything, this book does an excellent job in reminding us of the diversity of valuation techniques in use, and the diversity of reasons for doing valuations. Given the frequency with which privately held companies are bought, one would think that knowing how to value companies whose stock is not publically traded is useful for general businesspeople, not just accountants and attorneys. But if you absolutely insist that you just want to know how to value publically traded companies and don't give a hoot for calculating "private equity discounts" or "minority shareholder discounts", then I would recommend Aswath Damodaran's books "Damodaran on Valuation", "The Dark Side of Valuation" or "Investment Valuation". Damodaran, professor of Finance at NYU, actually uses the same techniques taught here, but applied to public equity investing and with different names (for example, what is called the "Market approach" here is just what Damodaran calls "relative valuation" in a different context).

9 of 9 people found the following review helpful:

5.0 out of 5 stars This is a Terrific Resource for Practitioners Not Investors, September 15, 2004

By 

MT57 (USA) - See all my reviews

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This review is from: Valuing A Business, 4th Edition (Hardcover)

I am a lawyer who has tried valuation cases and this book is a terrific resource for valuation experts and attorneys. I used it to defend and to attack witnesses. It is respected. It is used at the Federal Judicial Center as training for judges on these issues. It is not at all appropriate for people who are trying to value companies for investment purposes.

16 of 19 people found the following review helpful:

2.0 out of 5 stars Useful, but there are better books out there, August 24, 2001

By A Customer

This review is from: Valuing A Business, 4th Edition (Hardcover)

The authors have taken an approach from an accounting or legal standpoint. They haven't included methods incorporating EVA or contingent claims analysis. For as thick as this book is--and it is really thick--there is a surprising lack of detail. If you're looking to value companies of any significant size, buy the McKinsey book instead. If you're going to work with only closely held firms, estates, etc. then perhaps this book is for you.