This book will help the reader understand the why of business valuation. Most business valuation books deal with the how by focusing on an interesting amalgamation of seemingly unrelated financial concepts. The book assembles the various valuation concepts into a theoretically and practically consistent whole. The reader will view financial concepts not as unrelated, but as part of a complete and clear picture of business valuation. Chapters included are: 1)Discounted Cash Flow and the Gordon Model: The Very Basics of Value; 2) Organizing Principles of the “World of Value”; 3) The Integrated Theory of Business Valuation; 4) Adjustments to Income Statements–Normalizing and Control Adjustments; 5) Fundamental Adjustments to Market Capitalization Rates; 6) The Adjusted Capital Asset Pricing Model; 7) The Quantitative Marketability Discount Model; 8) Fair Market Value vs. The Real World; 9) Economic Value Added, Economic Profit, and Market Value Added; 10) The Levels of Value in Perspective
Book Details:
- Author: Z. Christopher Mercer
- ISBN: 9780470148167
- Year Published: 2007
- Pages: 288
- BISAC: BUS017020, BUSINESS & ECONOMICS/Corporate Finance / Valuation
About the Book and Topic:
This book will help the reader understand the why of business valuation. Most business valuation books deal with the how by focusing on an interesting amalgamation of seemingly unrelated financial concepts. The book assembles the various valuation concepts into a theoretically and practically consistent whole. The reader will view financial concepts not as unrelated, but as part of a complete and clear picture of business valuation. Chapters included are: 1)Discounted Cash Flow and the Gordon Model: The Very Basics of Value; 2) Organizing Principles of the “World of Value”; 3) The Integrated Theory of Business Valuation; 4) Adjustments to Income Statements–Normalizing and Control Adjustments; 5) Fundamental Adjustments to Market Capitalization Rates; 6) The Adjusted Capital Asset Pricing Model; 7) The Quantitative Marketability Discount Model; 8) Fair Market Value vs. The Real World; 9) Economic Value Added, Economic Profit, and Market Value Added; 10) The Levels of Value in Perspective
The Integrated Theory of Business Valuation is a theoretical discussion of financial and valuation concepts designed to explain the behavior of real-world market participants in the context of financial theory and institutional reality. It is examined in the context of the cash flows of business enterprises- and the derivative cash flows attributable to specific interests in those enterprises.
Strong author platform. Chris Mercer is a luminary in the field of business valuation. He is the author of several business valuation books and is one of the most sought after speakers on business valuation in the nation The book helps the reader understand the why of business valuation. Most books deal with the how. Once the why of business valuation is understood, the how becomes much more straightforward. Revision includes New introductory chapter that eases the reader into the book Revision includes review of latest restricted stock and pre-IPO studies Updated Quantitative Marketability Discount Model (QMDM) chapter New: S Corporation valuation chapter New: Discussion of the latest development in Business Valuation practice in light of the new integrated theory The book shows how financial concepts are part of a complete and clear picture of business valuation Presents organizing principles of business valuation Examines the relationships between the Gordon Model and the DCF model of valuation Defines the levels of value in the contest of enterprise and shareholder cash flows
About the Author
Z. Christopher Mercer, ASA, CFA, is a luminary in the field of business valuation. He is the author of several business valuation books and is editor of the Editorial Advisory Board of Valuation Strategies, a national magazine published by RIA Group dealing with current appraisal issues. He is one of the most sought after speakers on business valuation in the nation. Mercer is the founder and CEO of Mercer Capital Management, Inc., a leading business valuation and investment banking firm.