The Market Approach to Valuing Businesses (PDF)

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 is the premier
way to determine the value of a business or partnership. With
convincing evidence of value for both buyers and sellers, it can
end stalemates and get deals closed. Acclaimed for its empirical
basis and objectivity, this approach is the model most favored by
the IRS and the United States Tax Court-as long as it's properly
implemented.

Shannon Pratt's The Market Approach to Valuing
Businesses, Second Edition provides a wealth of proven
guidelines and resources for effective market approach
implementation. 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 US acquisitions over the last twenty-five
years

* An analysis of the effect of size on value

* Common errors in applying the market approach

* Court reactions to the market approach and information to help
you avoid being blindsided by a litigation opponent

Must reading for anyone who owns or holds a partial interest in
a small or large business or a professional practice, as well as
for CPAs consulting on valuations, appraisers, corporate
development officers, intermediaries, and venture capitalists,
The Market Approach to Valuing Businesses will show
you how to successfully reach a fair agreement-one that will
satisfy both buyers and sellers and stand up to scrutiny by courts
and the IRS.