The Market Approach to Valuing Businesses (Hardcover)

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Editorial Reviews

Product Description

Earn 8 CPE credits

Your Best Approach to Determining Value

If you’re buying, selling, or valuing a business, how can you determine its true value? By basing it on present market conditions and sales of similar businesses. The "market approach" to valuing businesses is quickly becoming popular for determining the value of a business or partnership. Praised for its objectivity, the approach is the model most favored by the IRS and the United States Tax Court–as long as it’s properly implemented.

With Shannon Pratt’s The Market Approach to Valuing Businesses, buyers and sellers can best ensure effective market approach implementation. Designed for anyone who needs to carry out or review a market approach to valuation, this book serves as both practical tutorial and handy desk reference.

In this comprehensive guide, you’ll find information on valuing and its applications, case studies on small and midsize businesses, and a detailed analysis of the latest market approach developments as well as:

• A critique of U.S. acquisitions over the last 20 years
• An analysis of the effect of size on value
• Common errors in applying the market approach
• Court reactions to the market approach

Must-reading for anyone who owns or holds a partial interest in a small or large business or a professional practice, The Market Approach to Valuing Businesses will show you how to successfully reach a fair agreement.

From the Inside Flap

The market approach to valuing businesses is increasingly becoming a popular way to determine a business’s value–for both buyers and sellers. Praised for its objectivity, this approach consists of reviewing the annual sales and other financial variables of comparable businesses for guidance in valuation. And when well implemented, the market approach is the model most favored by the IRS and the United States Tax Court.

Given that the market approach is a dynamic one, where can you turn to help ensure effective market approach implementation? Enter Shannon Pratt’s The Market Approach to Valuing Businesses.

An essential guide for anyone who owns a small or large business, a professional practice, or a partial interest, The Market Approach to Valuing Businesses covers applications including:

• Pricing for purchases and sales
• Marital dissolution property valuation
• Valuation for gift and estate taxes
• Shareholder matters, such as dissenting stockholder suits, minority oppression actions, and resolutions of value under buy-sell agreements

The Market Approach to Valuing Businesses is generously supplemented with illustrative examples and sample cases, an extensive bibliography, an appendix on data resources, and up-to-the-minute information on recent developments such as the SEC’s Electronic Data Gathering and Retrieval (EDGAR) system.

From providing definitions of basic and more complex terms to comparing and reconciling different market approach valuation methods and presenting comparative market value tables, The Market Approach to Valuing Businesses offers a state-of-the art treatise for both valuation professionals and nonprofessionals.

Whether you’re a business valuation analyst, an acquirer, a seller, an intermediary, or in the legal field, The Market Approach to Valuing Businesses will show you why the market approach is a pragmatic, viable solution for present and future businesses.

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Product Details

• Hardcover: 400 pages
• Publisher: Wiley; 1 edition (October 25, 2000)
• Language: English
• ISBN-10: 0471359289
• ISBN-13: 978-0471359289
• Product Dimensions: 9 x 6.1 x 1 inches
• Shipping Weight: 1.9 pounds
• Average Customer Review: 4.0 out of 5 stars  See all reviews (1 customer review)
• Amazon.com Sales Rank: #729,713 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

5 of 10 people found the following review helpful:

4.0 out of 5 stars As we have come to expect, Pratt is exceptional., June 9, 2001

By	"txricochet" (Texarkana, TX USA) - See all my reviews

Everyone with even a causal interest in business valuation respects Shannon Pratt. He lives up to his reputation in The Market Approach. My favorite is the contrast and comparison of the different data available for private transactions.

If there is any criticism, it has to be his subtle efforts to market Pratt's Stats. No one would blame him too much for that.