Valuing Small Businesses and Professional Practices Book

Pt. I	Introduction: Understanding the Valuation Process	1
1	Business Valuation Standards and Professional Associations	3
2	Defining the Valuation Assignment	19
3	Defining Value	37
4	How Valuations Differ for Different Purposes	51
5	Differences between the Valuation of Large and Small Businesses	65
6	Comparison between Business Appraisal Practices and Real Estate Appraisal Practices	83
Pt. II	Analyzing the Company	93
7	Adjusting the Balance Sheet	95
8	Adjusting the Income Statement	117
9	Comparisons with Industry Averages	133
10	Analyzing Qualitative Factors	149
11	The Buyer's Perspective - Pro Forma Statements	177
Pt. III	Reaching the Value Conclusion	191
12	Value Drivers	193
13	Understanding Discount and Capitalization Rates	201
14	The Discounted Economic Income Method	235
15	The Capitalized Economic Income Method	253
16	The Guideline Publicly Traded Company Method	269
17	Public Company Data: What's Available and How to Get It Easily and Inexpensively	297
18	The Comparative Transaction Method	309
19	The Multiple of Discretionary Earnings (Seller's Discretionary Cash) Method	327
20	The Gross Revenue Multiples Method	339
21	Comparative Transaction Databases	349
22	The Asset Accumulation Method	365
23	The Capitalized Excess Earnings Method	401
24	Discount for Lack of Control	425
25	Discount for Lack of Marketability	445
26	Valuation Synthesis and Conclusion	477
27	Tradeoff between Cash and Terms	489
28	Making a Reality Check: Is the Value Estimate Reasonable?	503
29	Common Errors	511
30	Sample Case	533
31	Solution to the Sample Case	543
Pt. IV	Valuing Professional Practices	557
32	Introduction to Professional Practice Valuation	559
33	Adjusting the Professional Practice Balance Sheet	569
34	Elements That Create Professional and Practice Goodwill	583
35	Estimating the Value of the Professional Practice	595
36	Sample Professional Practice Valuation Report	613
37	Examples of Professional Practice Valuation Methods	649
Pt. V	Valuations for Specific Purposes	671
38	Buy-Sell Agreements and Estate Planning	673
39	Employee Stock Ownership Plans in Small Companies	699
40	Corporate and Partnership Buyouts and Dissolutions	713
41	Marital Dissolutions	721
Pt. VI	Topics Related to Valuation	735
42	Valuing Intangible Assets	737
43	Buying or Selling a Business or Practice	759
44	Working with a Business Appraiser	775
45	Working with a Business Broker	793
Pt. VII	Litigation and Dispute Resolution	805
46	Litigation	807
47	Damages	825
48	Arbitrating or Mediating Disputed Valuations	845
	App. A General Resource List	861
App. B	Revenue Ruling 59-60	865
	Index	871