The Market Approach to Valuing Businesses

About this book

Your Best Approach to Determining Value If youre 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 its properly implemented. Shannon Pratts The Market Approach to Valuing Businesses Second Edition provides a wealth of proven guidelines and resources for effective market approach implementation. Youll 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.