A Basic Guide for Valuing a Company

Wilbur M. Yegge

John Wiley & Sons, 2002 - Business & Economics - 294 pages

The Groundwork of Company Valuation for First-time Buyers and Sellers

A Basic Guide for Valuing a Company has helped thousands of first-time buyers and sellers realize a fair, substantiated value for small businesses. Now in its Second Edition, this book covers common valuation techniques and myths, tips for determining tangible and intangible values, sample balance sheets and income statements, and approaches to valuing start-up technology and dot-com businesses.

This nuts-and-bolts guide addresses publicly traded and privately held firms, including traditional brick-and-mortar companies and the intellectual property industry. With a clear, concise writing style, the author walks readers through common practices for valuing, from collecting data to arriving at a saleable figure for all types of businesses, including professional practice, manufacturing, wholesale distributors, and a variety of retail operations. This new edition features perspectives on nontraditional valuation practices, guidance for using an excess earnings method, and an abundance of case studies from actual companies.

In order to make the most profitable decisions, before putting a business on the market or making an offer to acquire one, every beginning business purchaser and seller should read A Basic Guide for Valuing a Company, Second Edition.

Contents

• Chapter 1 Setting the Stage This Business of Valuing Small Closely Held Companies: 1
• Chapter 2 Dispelling Perceptions about Value Because Its a Rascal We Cant Really Ignore: 8
• Chapter 3 Intangible Values: 17
• Chapter 4 Industry and Economic Forces: 23
• Chapter 5 The Four Steeds in Business Valuation: 29
• Chapter 6 Nontraditional Valuation Practitioners: 32
• Chapter 7 The Data Collection Process: 36
• Chapter 8 Setting the Records Straight: 40
• Chapter 9 Valuation Techniques: 46
• Chapter 10 Practicing with an Excess Earnings Method: 61
• Prelude to Case Examples of SmallBusiness Valuation: 69
• Chapter 11 ProfessionalPractice Valuation: 71
• Chapter 12 Small Manufacturer Valuation With Ratio Studies: 87
• Chapter 13 Valuation of a Restaurant: 107
• Chapter 14 Seventy Cents on the Dollar: 124
• Chapter 15 Retail HomeDecorating Business Valuation With Production and Retail Sales: 137
• Chapter 16 Retail Hardware Stores: 158
• Chapter 17 Retail Garden Center: 170
• Chapter 18 Grocery Store: 188
• Chapter 19 Manufacturer with MailOrder Sales: 204
• Chapter 20 Wholesale Distributor: 220
• Chapter 21 A Practice Session A Marina Valuation: 236
• Chapter 22 Concluding Thoughts about Value and Price: 250
• Chapter 23 DotComInformation Technology: 256
• Appendix A Valuation of a Marina Authors Responses: 274
• Appendix B Yegges Rules for Making Deals Work: 289
• About the Author: 291
• Index: 293

About the author

WILBUR M. YEGGE, PhD, has bought and sold five companies, brokered the sale of over 300 small businesses, and valued more than 1,000 others. President of a management consulting firm, he is the author of Self-Defense Finance for Small Businesses and A Basic Guide for Buying and Selling a Company, both published by Wiley.

Bibliographic information

• Title: A Basic Guide for Valuing a Company
• Author: Wilbur M. Yegge
• Edition: 2, illustrated
• Publisher: John Wiley & Sons, 2002
• ISBN: 0471150479, 9780471150473
• Length: 294 pages
• Subjects: Business & Economics / Entrepreneurship; Business & Economics / Finance; Business & Economics / Mergers & Acquisitions; Business & Economics / Small Business