Valuation for M&A

Determine a company's value, what drives it, and how to enhance value during a M&A

Valuation for M&A lays out the steps for measuring and managing value creation in non-publicly traded entities, and helps investors, executives, and their advisors determine the optimum strategy to enhance both market value and strategic value and maximize return on investment.

As a starting point in planning for a transaction, it is helpful to compute fair market value, which represents a “floor” value for the seller since it by definition represents a value agreed upon by any hypothetical willing and able buyer and seller.  But for M&A, it is more important to compute investment value, which is the value of the target company to a strategic buyer (and which can vary with each prospective buyer). 

• Prepare for the sale and acquisition of a firm
• Identify, quantify, and qualify the synergies that increase value to strategic buyers
• Get access to new chapters on fairness opinions and professional service firms
• Find a discussion of Roger Grabowski's writings on cost of capital, cross-border M&A, private cost of capital, intangible capital, and asset vs. stock transactions

Inside, all the necessary tools you need to build and measure private company value is just a page away! 

CHRIS M. MELLEN is a managing director with Valuation Research Corporation who leads its Boston office. Previously, he was president of Delphi Valuation Advisors, Inc., which he founded in 2000 and sold to VRC in 2015. Mellen is the author of numerous articles on valuation-related topics and coauthor of the second edition and author of the third edition of Valuation for M&A.

FRANK C. EVANS is the founder of Evans and Associates Valuation Advisory Services. A prolific educator and speaker, he is coauthor of the first and second editions of Valuation for M&A.

A business must measure its value potential in order to grow and succeed. Companies that trade on a stock exchange can easily see their market value day to day, but private companies are far more challenged in gauging their value, which further complicates the tricky negotiations involved in mergers and acquisitions (M&A). Valuation for M&A remains the only authoritative guide on the market for executives and investors who want to know both the fair market value and investment value of a closely-held business. This revised and expanded Third Edition presents a fully up-to-date road map to measuring value in businesses being considered for sale and purchase, as well as growing value in a company's daily operations. New coverage brings you up to speed on all the changes in the marketplace, including how to accurately value knowledge-based assets and how to value businesses with a global perspective. This dependable resource now features a streamlined, quick-reference format to seamlessly answer your everyday questions on: Negotiating toward a win-win outcome in any M&A transaction--as a buyer and a seller Building company value leading up to an M&A transaction by conducting both quantitative and qualitative assessments Mastering a valuation skillset specific to M&A, including exit planning, deal structuring, fairness opinions, and financial reporting This new edition also offers fresh discussions on cost of capital, including the Duff & Phelps Risk Premium Report Size Study and the Private Cost of Capital. Finally, there are new contributions by Ken Sanginario on "Using Specific Company Risk Strategically" and Justin Johnson on "Disciplined and Thorough Valuation Analysis are Key to Avoiding Failed M&A Deals." Know for certain whether selling or buying a company is the right strategic move with Valuation for M&A, Third Edition .

The definitive authority on valuation for M&A fine-tuned for todays realities Valuation for M&A, Third Edition is the premier guidebook on valuing businesses for M&A, complete with a robust toolkit for accurately determining value, identifying its drivers, and enhancing them. Developing strategy and measuring performance is difficult without the benefit of a stock price, and this refreshed edition of the widely used resource on valuation specifically for M&A involving private companies puts everything you need in one place, including useful checklists, sample interview questions, model formats, and more. Experienced investors and executives, as well as newcomers, can gain a fresh competitive edge with: Completely new material on fairness opinions and professional service firms, including a case study The latest advice and tips for navigating cross-border negotiations, private cost of capital, intangible capital, and both asset and stock transactions A new glossary of terms commonly used in valuation and M&A A convenient new format that puts the solutions you need at your fingertips quicker Get a clear, informed look at all the value in a business with Valuation for M&A, Third Edition .

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