Financial Valuation: Applications and Models + Website

Financial Valuation

Applications and Models

Fourth Edition

Assembled by valuation authority James Hitchner, Financial Valuation: Applications and Models (FVAM) brings together 30 of the country′s top practitioners to analyze, explain, and collaborate on the most effective valuation procedures, demonstrating real–world applications in the field of financial valuation. This text is the first time such a large group of diverse practitioners has been assembled to agree on the application of valuation principles and methods. There is no other text like this.

FVAM is an all–encompassing valuation text that presents the application of financial valuation theory in an easily understood manner. Although valuation theory is thoroughly discussed, the focus is on applications, models, and methods. FVAM contains numerous examples and methods that will assist the reader in navigating a valuation project.

Since its debut in 2003, Financial Valuation: Applications and Models, now in its fourth edition, has increasingly become the go–to source for business valuation education. It currently serves as the primary text in several university courses throughout the country and is the basis for both the American Institute of Certified Public Accountants five–day national business valuation school and the National Association of Certified Valuators and Analysts three–day advanced business valuation course.

The book is a primary source for researching controversial topics. Comprehensive in coverage and respected for its content, Financial Valuation: Applications and Models provides trusted, complete business valuation information for CPAs, appraisers, analysts, attorneys, and corporate executives.

Coauthors: R. James Alerding Rosanne J. Aumiller Jeff Balcombe Neil J. Beaton Melissa Bizyak Marcie D. Bour James T. Budyak Carol Carden Stacy Preston Collins Larry R. Cook Don M. Drysdale Edward J. Dupke Jay E. Fishman Chris Hamilton Thomas E. Hilton James R. Hitchner Vincent M. Kickirillo Mark G. Kucik Eva M. Lang Harold G. Martin Jr. Edward F. Moran Jr. Raymond E. Moran Katherine E. Morris Shannon P. Pratt Ronald L. Seigneur Stacey Udell Samuel Y. Wessinger Richard M. Wise Donald P. Wisehart Kevin R. Yeanoplos

CHAPTER 1 Introduction to Financial Valuation 1

CHAPTER 2 Standards of Value 29

CHAPTER 3 Research and Its Presentation 59

CHAPTER 4 Financial Statement and Company Risk Analysis 77

CHAPTER 5 Income Approach 117

CHAPTER 6 Cost of Capital/Rates of Return 185

CHAPTER 7 International Cost of Capital 271

CHAPTER 8 Market Approach 291

CHAPTER 9 Asset Approach 343

CHAPTER 10 Valuation Discounts and Premiums 391

CHAPTER 11 Report Writing 495

CHAPTER 12 Business Valuation Standards 583

CHAPTER 13 Valuation of Pass–Through Entities 607

CHAPTER 14 Estate, Gift, and Income Tax Valuations 681

CHAPTER 15 Valuation of Family Limited Partnerships 725

CHAPTER 16 Summary of Tax Court Case Valuation Issues 779

CHAPTER 17 Shareholder Disputes 783

CHAPTER 18 Employee Stock Ownership Plans 801

CHAPTER 19 Valuation in the Divorce Setting 831

CHAPTER 20 Valuation Issues in Small Businesses 853

CHAPTER 21 Valuation Issues in Professional Practices 867

CHAPTER 22 Reasonable Compensation 889

CHAPTER 23 The Valuator as Expert Witness 911

CHAPTER 24 Fair Value Measurement and the Valuation of Intangible Assets 931

CHAPTER 25 Marketing, Managing, and Making Money in a Valuation Services Group 1007

CHAPTER 26 Business Damages 1009

CHAPTER 27 Other Valuation Service Areas 1043

CHAPTER 28 Valuation of Healthcare Service Businesses 1047

CHAPTER 29 Determination of Compensation in the Healthcare Industry 1089

CHAPTER 30 Special Industry Valuations 1099

CHAPTER 31 Valuation Views and Controversial Issues: An Illustration 1179

Index 1229

JAMES R. HITCHNER, CPA/ABV/CFF, ASA, is Managing Director of Financial Valuation Advisors, Inc., President of The Financial Consulting Group, and CEO of Valuation Products and Services. He has thirty–seven years of valuation experience. He is editor in chief of Financial Valuation and Litigation Expert journal. Mr. Hitchner is editor/coauthor of Financial Valuation Workbook, Fourth Edition; A Consensus View Q&A Guide to Financial Valuation; Valuation for Financial Reporting: Fair Value, Business Combination, Intangible Assets, Goodwill and Impairment Analysis, Third Edition; and coauthor of PPC′s Guide to Business Valuations. He has provided testimony on valuations in numerous state and federal courts. An inductee in the AICPA Business Valuation Hall of Fame, he is one of the four members of the original AICPA Business Valuation Standards Writing Task Force, on which he served for six years, until the June 2007 official release of the standards.