The learning objective for this course is to review 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.
The text also features perspectives on nontraditional valuation practices, guidance for using an excess earnings method, and an abundance of case studies from actual companies.
Lesson and Objectives |
Reading
Assignment |
| Valuing a Company |
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1. Setting the Stage |
Chapter 1 |
The learning objectives for this lesson are to gain an understanding of:
- Fair market value
- Myths commonly associated with business value
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| 2. Dispelling Perception About Value |
Chapter 2 |
The learning objectives for this lesson are to gain an understanding of:
- What is value
- Publicly traded companies
- Closely held companies
- Focus of perceptions
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| 3. Intangible Values |
Chapter 3 |
The learning objectives for this lesson are to gain an understanding of:
- Internal and external forces
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| 4. Industry and Economic Forces |
Chapter 4 |
The learning objectives for this lesson are to gain an understanding of:
- Industry
- Local, regional, and national economic forces
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| 5. The Four Steed in Business Valuation |
Chapter 5 |
The learning objectives for this lesson are to gain an understanding of:
- Argument:: the steed of war
- Controversy: the steed of conquest
- Joinder: the steed of pestilence
- The steed of death
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| 6. Nontraditional Valuation Practitioners |
Chapter 6 |
The learning objectives for this lesson are to gain an understanding of:
- Business brokers
- Commercial bankers, accountants, and lawyers
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| 7. The Data Collection Process |
Chapter 7 |
The learning objectives for this lesson are to gain an understanding of:
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| 8. Setting the Records Straight |
Chapter 8 |
The learning objectives for this lesson are to gain an understanding of:
- Reconstruction and weighting cash flows
- Typical items for reconstruction
- Weighting the cash streams
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| 9. Valuation Techniques |
Chapter 9 |
The learning objectives for this lesson are to gain an understanding of:
- This is what counts method
- Appropriate purchase price
- Book value method
- Adjusted book value method
- Hybrid method
- Excess earnings method
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| 10. Practice with an Excess Earnings Method |
Chapter 10 |
The learning objectives for this lesson are to gain an understanding of:
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| 11. Professional-Practice Method |
Chapter 11 |
The learning objectives for this lesson are to gain an understanding of:
- Key features
- When to value
- The valuation task
- The valuation session
- The task
- Rule-of-thumb estimates
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| 12. Small Manufacturer Valuation |
Chapter 12 |
The learning objectives for this lesson are to gain an understanding of:
- A valuation exercise
- Financial analysis
- Rule-of-thumb estimates
- Discounted cash flow
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| 13. Valuation of a Restaurant |
Chapter 13 |
The learning objectives for this lesson are to gain an understanding of:
- A valuation exercise
- Rule-of-thumb estimates
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| 14. Seventy cents on the Dollar |
Chapter 14 |
The learning objectives for this lesson are to gain an understanding of:
- A bankruptcy court proposal
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| 15. Retail Home-Decorating Business Valuation |
Chapter 15 |
The learning objectives for this lesson are to gain an understanding of:
- A valuation exercise
- Financial analysis
- Rule-of-thumb estimates
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| 16. Retail Hardware Stores |
Chapter 16 |
The learning objectives for this lesson are to gain an understanding of:
- Financial analysis
- A valuation exercise
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| 17. Retail Garden Center |
Chapter 17 |
The learning objectives for this lesson are to gain an understanding of:
- Financial analysis
- A valuation exercise
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| 18. Grocery Store |
Chapter18 |
The learning objectives for this lesson are to gain an understanding of:
- Financial analysis
- A valuation exercise
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| 19. Manufacturer with Mail-Order Sales |
Chapter 19 |
The learning objectives for this lesson are to gain an understanding of:
- Financial analysis
- A valuation exercise
- Rule-of-thumb estimates
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| 20. Wholesale Distributor |
Chapter20 |
The learning objectives for this lesson are to gain an understanding of:
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| 21.A Practice Session |
Chapter 21 |
The learning objectives for this lesson are to gain an understanding of:
- A marina valuation exercise
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| 22. Value and Price |
Chapter 22 |
The learning objectives for this lesson are to gain an understanding of:
- Down payments
- Salary or wage
- The rest of the story
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| 23. Yegges' Rules for Making Deals Work |
Chapter 23 |
The learning objectives for this lesson are to gain an understanding of:
- Key points for making deals succeed
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36. Small manufacturing companies that are well established, with strong evidence of good operating performance, can change hands in a range of _____ times reconstructed earnings.
37. Discounted cash flow methods, when used alone, tend frequently to undervalue the small, closely held enterprise.
