Small Business Valuation Methods: How to Evaluate Small, Privately-Owned Businesses
Saved in:
| Main Author: | |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Cham
Springer International Publishing AG
2021
|
| Subjects: | |
| Online Access: | HWR01 |
| Physical Description: | 1 Online-Ressource (182 Seiten) |
| ISBN: | 9783030897192 9783030897185 |
Staff View
MARC
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| 505 | 8 | |a Intro -- Preface -- A Practical Book -- The Target of the Book -- The Purpose of the Book -- The Limits of the Book -- Practical Reading of the Book -- Contents -- About the Author -- List of Figures -- List of Tables -- 1 Enterprise Value, Company Value, and Other Essential Financial Data -- 1.1 Definition of Two Essential Aggregates -- 1.1.1 Enterprise Value -- 1.1.2 The Fair Market Value of Equity -- 1.1.3 Case Study Showing the Differences Between the Two Aggregates -- 1.1.4 Fundamental Equations -- 1.1.5 Market Efficiency and Behavioral Finance -- 1.2 The Strategic Positioning of a Company -- 1.3 Method Comparison and a Few Recommendations -- 1.4 Key Takeaways and Limitations -- References and Further Reading -- 2 Asset-Based Approach to Valuation -- 2.1 The Net Worth of a Company -- 2.2 Adjusted Net Asset Value Method -- 2.2.1 Essential Income Statement Adjustments -- Adjustments Due to Under-Investments -- The Business's Owner Remuneration or Compensation Package -- Lease Payments and Rents -- Exclusion of Non-recurring Items -- Case Study of a Normalized Income Statement -- 2.2.2 Essential Asset Adjustments -- The Net Book Value, an Imperfect Valuation Measurement -- The Value of Intangible Assets -- Leased Assets on the Balance Sheet -- Real Estate Valuation Review -- Goodwill Impairment -- 2.2.3 Essential Equity and Liability Adjustments -- The Fair Market Value of Loans -- Convertible Bonds Reclassified as Equity -- Provisions Reclassified as Equity or Debt -- Off Balance Sheet Liabilities -- Minority Interest of Non-controlling Interest -- 2.2.4 Case Study of a Family Owned Real Estate Investment Company -- 2.2.5 Adjusted Net Asset Value Case Study -- 2.3 The Capitalized Excess Earnings or Goodwill Method -- 2.3.1 Intangible Assets and Goodwill -- 2.3.2 Implementation of the CEEM or Goodwill Method -- Excess Net Earnings | |
| 505 | 8 | |a Excess Operating Earnings -- Excess Earnings Duration -- 2.3.3 Goodwill Valuation Case Study -- Company Euphoria Financial Details -- Excess Net Earnings Method -- Excess Net Operating Earnings Method -- Findings and Conclusion -- 2.4 Key Takeaways and Limitations -- References and Further Reading -- 3 Fundamental Value or DCF Approach to Valuation -- 3.1 Fundamental Value Definition -- 3.2 The Two-Stage DCF Method -- 3.3 Generalities on the Forecast and Scenarios -- 3.4 Free Cash Flows -- 3.4.1 Free Cash Flow to the Firm -- 3.4.2 Free Cash Flow to Equity -- 3.4.3 Company SEGI's Free Cash Flows Case Study -- SEGI's Operating Cash Flow -- SEGI's Investment Cash Flow -- SEGI's Free Cash Flow to the Firm -- SEGI's Free Cash Flow to Equity -- 3.4.4 Free Cash Flow Summary -- 3.5 Cost of Equity -- 3.5.1 The Methods Used -- 3.5.2 The Issues and Ambiguities of the Risk Premiums -- 3.5.3 Estimated Cost of Equity for a Small Business -- 3.5.4 Implementation of the Build-Up Method -- 3.6 Weighted Average Cost of Capital (WACC) -- 3.7 Dividend Discount Model -- 3.8 DCF Case Study (Company SEGY) -- 3.8.1 Free Cash Flows and Assumptions -- 3.8.2 Indirect DCF Method -- Step 1 of the Calculation -- Step 2 of the Calculation, Equity Value Estimate -- 3.8.3 Direct DCF Method -- 3.8.4 Estimated Equity Value -- 3.9 Key Takeaways and Limitations -- References and Further Reading -- 4 Market Approach to Valuation -- 4.1 Precedent Transaction Analysis -- 4.2 The P/E Multiple Approach -- 4.2.1 Potential Valuation Case Study -- 4.2.2 P/E Dynamics -- The Credit Risk Factor -- The Estimated Growth in Net Income -- The Level of Interest Rates -- 4.2.3 P/E Limitations -- 4.3 The EV/EBITDA Multiple Approach -- 4.4 Other Comparative Valuation Approaches -- 4.4.1 The Price-to-Book Value Multiple -- 4.4.2 Cash Flow Multiples -- 4.4.3 Valuation with a Non-Financial Multiple | |
| 505 | 8 | |a 4.5 Market Multiple Adjustments -- 4.6 Case Study with the P/E and EV/EBITDA Multiples -- 4.6.1 Company Y's Financial Data -- 4.6.2 Comparison Between the P/E and EV/EBITDA Multiples -- 4.6.3 Equity Value Calculation with the Two Sector Multiples -- 4.6.4 Equity Value Calculation with the Leader Multiples -- 4.6.5 Equity Value Calculation with the Laggard Multiples -- 4.6.6 Equity Value Overview -- 4.6.7 The Business Valuation Professional's Decision -- 4.6.8 The Drawbacks of Historical Averages -- 4.7 Key Takeaways and Limitations -- References and Further Reading -- 5 Full Valuation Case Study (Company SEGA) -- 5.1 Generalities on the Applied Valuation Methods -- 5.2 Presentation of Company SEGA -- 5.3 Adjusted Net Asset Value -- 5.3.1 The Adjusted Net Asset Value Method -- Income Statement Adjustments -- Balance Sheet Adjustments -- Adjusted Equity -- 5.3.2 The CEEM or Goodwill Method -- The CEEM Using Excess Operating Earnings -- The CEEM Using Excess Net Earnings -- 5.3.3 Asset-Based Equity Value Estimates -- 5.4 Discounted Cash Flow Methods -- 5.4.1 Valuation According to the Optimistic-Case Scenario -- 5.4.2 Valuation According to the Pessimistic-Case Scenario -- 5.4.3 DCF Value Estimates -- 5.5 Precedent Transaction Analysis and Market Multiple Valuation -- 5.5.1 Precedent Transaction Analysis -- 5.6 Adjusted P/E Multiple -- 5.6.1 Dividend Discount Model -- 5.6.2 EV/EBITDA Multiple Valuation -- 5.6.3 Market Value Estimates -- 5.7 Estimated Equity Value of Company SEGA -- 5.7.1 Results -- 5.7.2 The Valuation Professional's Decision -- References and Further Reading -- General Bibliography, Webography, and Further Reading -- Index | |
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Record in the Search Index
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| author | Coulon, Yannick |
| author_facet | Coulon, Yannick |
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| building | Verbundindex |
| bvnumber | BV048631788 |
| classification_rvk | QP 770 |
| collection | ZDB-30-PQE |
| contents | Intro -- Preface -- A Practical Book -- The Target of the Book -- The Purpose of the Book -- The Limits of the Book -- Practical Reading of the Book -- Contents -- About the Author -- List of Figures -- List of Tables -- 1 Enterprise Value, Company Value, and Other Essential Financial Data -- 1.1 Definition of Two Essential Aggregates -- 1.1.1 Enterprise Value -- 1.1.2 The Fair Market Value of Equity -- 1.1.3 Case Study Showing the Differences Between the Two Aggregates -- 1.1.4 Fundamental Equations -- 1.1.5 Market Efficiency and Behavioral Finance -- 1.2 The Strategic Positioning of a Company -- 1.3 Method Comparison and a Few Recommendations -- 1.4 Key Takeaways and Limitations -- References and Further Reading -- 2 Asset-Based Approach to Valuation -- 2.1 The Net Worth of a Company -- 2.2 Adjusted Net Asset Value Method -- 2.2.1 Essential Income Statement Adjustments -- Adjustments Due to Under-Investments -- The Business's Owner Remuneration or Compensation Package -- Lease Payments and Rents -- Exclusion of Non-recurring Items -- Case Study of a Normalized Income Statement -- 2.2.2 Essential Asset Adjustments -- The Net Book Value, an Imperfect Valuation Measurement -- The Value of Intangible Assets -- Leased Assets on the Balance Sheet -- Real Estate Valuation Review -- Goodwill Impairment -- 2.2.3 Essential Equity and Liability Adjustments -- The Fair Market Value of Loans -- Convertible Bonds Reclassified as Equity -- Provisions Reclassified as Equity or Debt -- Off Balance Sheet Liabilities -- Minority Interest of Non-controlling Interest -- 2.2.4 Case Study of a Family Owned Real Estate Investment Company -- 2.2.5 Adjusted Net Asset Value Case Study -- 2.3 The Capitalized Excess Earnings or Goodwill Method -- 2.3.1 Intangible Assets and Goodwill -- 2.3.2 Implementation of the CEEM or Goodwill Method -- Excess Net Earnings Excess Operating Earnings -- Excess Earnings Duration -- 2.3.3 Goodwill Valuation Case Study -- Company Euphoria Financial Details -- Excess Net Earnings Method -- Excess Net Operating Earnings Method -- Findings and Conclusion -- 2.4 Key Takeaways and Limitations -- References and Further Reading -- 3 Fundamental Value or DCF Approach to Valuation -- 3.1 Fundamental Value Definition -- 3.2 The Two-Stage DCF Method -- 3.3 Generalities on the Forecast and Scenarios -- 3.4 Free Cash Flows -- 3.4.1 Free Cash Flow to the Firm -- 3.4.2 Free Cash Flow to Equity -- 3.4.3 Company SEGI's Free Cash Flows Case Study -- SEGI's Operating Cash Flow -- SEGI's Investment Cash Flow -- SEGI's Free Cash Flow to the Firm -- SEGI's Free Cash Flow to Equity -- 3.4.4 Free Cash Flow Summary -- 3.5 Cost of Equity -- 3.5.1 The Methods Used -- 3.5.2 The Issues and Ambiguities of the Risk Premiums -- 3.5.3 Estimated Cost of Equity for a Small Business -- 3.5.4 Implementation of the Build-Up Method -- 3.6 Weighted Average Cost of Capital (WACC) -- 3.7 Dividend Discount Model -- 3.8 DCF Case Study (Company SEGY) -- 3.8.1 Free Cash Flows and Assumptions -- 3.8.2 Indirect DCF Method -- Step 1 of the Calculation -- Step 2 of the Calculation, Equity Value Estimate -- 3.8.3 Direct DCF Method -- 3.8.4 Estimated Equity Value -- 3.9 Key Takeaways and Limitations -- References and Further Reading -- 4 Market Approach to Valuation -- 4.1 Precedent Transaction Analysis -- 4.2 The P/E Multiple Approach -- 4.2.1 Potential Valuation Case Study -- 4.2.2 P/E Dynamics -- The Credit Risk Factor -- The Estimated Growth in Net Income -- The Level of Interest Rates -- 4.2.3 P/E Limitations -- 4.3 The EV/EBITDA Multiple Approach -- 4.4 Other Comparative Valuation Approaches -- 4.4.1 The Price-to-Book Value Multiple -- 4.4.2 Cash Flow Multiples -- 4.4.3 Valuation with a Non-Financial Multiple 4.5 Market Multiple Adjustments -- 4.6 Case Study with the P/E and EV/EBITDA Multiples -- 4.6.1 Company Y's Financial Data -- 4.6.2 Comparison Between the P/E and EV/EBITDA Multiples -- 4.6.3 Equity Value Calculation with the Two Sector Multiples -- 4.6.4 Equity Value Calculation with the Leader Multiples -- 4.6.5 Equity Value Calculation with the Laggard Multiples -- 4.6.6 Equity Value Overview -- 4.6.7 The Business Valuation Professional's Decision -- 4.6.8 The Drawbacks of Historical Averages -- 4.7 Key Takeaways and Limitations -- References and Further Reading -- 5 Full Valuation Case Study (Company SEGA) -- 5.1 Generalities on the Applied Valuation Methods -- 5.2 Presentation of Company SEGA -- 5.3 Adjusted Net Asset Value -- 5.3.1 The Adjusted Net Asset Value Method -- Income Statement Adjustments -- Balance Sheet Adjustments -- Adjusted Equity -- 5.3.2 The CEEM or Goodwill Method -- The CEEM Using Excess Operating Earnings -- The CEEM Using Excess Net Earnings -- 5.3.3 Asset-Based Equity Value Estimates -- 5.4 Discounted Cash Flow Methods -- 5.4.1 Valuation According to the Optimistic-Case Scenario -- 5.4.2 Valuation According to the Pessimistic-Case Scenario -- 5.4.3 DCF Value Estimates -- 5.5 Precedent Transaction Analysis and Market Multiple Valuation -- 5.5.1 Precedent Transaction Analysis -- 5.6 Adjusted P/E Multiple -- 5.6.1 Dividend Discount Model -- 5.6.2 EV/EBITDA Multiple Valuation -- 5.6.3 Market Value Estimates -- 5.7 Estimated Equity Value of Company SEGA -- 5.7.1 Results -- 5.7.2 The Valuation Professional's Decision -- References and Further Reading -- General Bibliography, Webography, and Further Reading -- Index |
| ctrlnum | (ZDB-30-PQE)EBC6810923 (ZDB-30-PAD)EBC6810923 (ZDB-89-EBL)EBL6810923 (OCoLC)1294353239 (DE-599)BVBBV048631788 |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| format | Electronic eBook |
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| id | DE-604.BV048631788 |
| illustrated | Not Illustrated |
| index_date | 2024-07-03T21:16:05Z |
| indexdate | 2024-07-10T09:44:32Z |
| institution | BVB |
| isbn | 9783030897192 9783030897185 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-034006808 |
| oclc_num | 1294353239 |
| open_access_boolean | |
| owner | DE-2070s |
| owner_facet | DE-2070s |
| physical | 1 Online-Ressource (182 Seiten) |
| psigel | ZDB-30-PQE ZDB-30-PQE HWR_PDA_PQE |
| publishDate | 2021 |
| publishDateSearch | 2021 |
| publishDateSort | 2021 |
| publisher | Springer International Publishing AG |
| record_format | marc |
| spelling | Coulon, Yannick Verfasser aut Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses Cham Springer International Publishing AG 2021 ©2022 1 Online-Ressource (182 Seiten) txt rdacontent c rdamedia cr rdacarrier Intro -- Preface -- A Practical Book -- The Target of the Book -- The Purpose of the Book -- The Limits of the Book -- Practical Reading of the Book -- Contents -- About the Author -- List of Figures -- List of Tables -- 1 Enterprise Value, Company Value, and Other Essential Financial Data -- 1.1 Definition of Two Essential Aggregates -- 1.1.1 Enterprise Value -- 1.1.2 The Fair Market Value of Equity -- 1.1.3 Case Study Showing the Differences Between the Two Aggregates -- 1.1.4 Fundamental Equations -- 1.1.5 Market Efficiency and Behavioral Finance -- 1.2 The Strategic Positioning of a Company -- 1.3 Method Comparison and a Few Recommendations -- 1.4 Key Takeaways and Limitations -- References and Further Reading -- 2 Asset-Based Approach to Valuation -- 2.1 The Net Worth of a Company -- 2.2 Adjusted Net Asset Value Method -- 2.2.1 Essential Income Statement Adjustments -- Adjustments Due to Under-Investments -- The Business's Owner Remuneration or Compensation Package -- Lease Payments and Rents -- Exclusion of Non-recurring Items -- Case Study of a Normalized Income Statement -- 2.2.2 Essential Asset Adjustments -- The Net Book Value, an Imperfect Valuation Measurement -- The Value of Intangible Assets -- Leased Assets on the Balance Sheet -- Real Estate Valuation Review -- Goodwill Impairment -- 2.2.3 Essential Equity and Liability Adjustments -- The Fair Market Value of Loans -- Convertible Bonds Reclassified as Equity -- Provisions Reclassified as Equity or Debt -- Off Balance Sheet Liabilities -- Minority Interest of Non-controlling Interest -- 2.2.4 Case Study of a Family Owned Real Estate Investment Company -- 2.2.5 Adjusted Net Asset Value Case Study -- 2.3 The Capitalized Excess Earnings or Goodwill Method -- 2.3.1 Intangible Assets and Goodwill -- 2.3.2 Implementation of the CEEM or Goodwill Method -- Excess Net Earnings Excess Operating Earnings -- Excess Earnings Duration -- 2.3.3 Goodwill Valuation Case Study -- Company Euphoria Financial Details -- Excess Net Earnings Method -- Excess Net Operating Earnings Method -- Findings and Conclusion -- 2.4 Key Takeaways and Limitations -- References and Further Reading -- 3 Fundamental Value or DCF Approach to Valuation -- 3.1 Fundamental Value Definition -- 3.2 The Two-Stage DCF Method -- 3.3 Generalities on the Forecast and Scenarios -- 3.4 Free Cash Flows -- 3.4.1 Free Cash Flow to the Firm -- 3.4.2 Free Cash Flow to Equity -- 3.4.3 Company SEGI's Free Cash Flows Case Study -- SEGI's Operating Cash Flow -- SEGI's Investment Cash Flow -- SEGI's Free Cash Flow to the Firm -- SEGI's Free Cash Flow to Equity -- 3.4.4 Free Cash Flow Summary -- 3.5 Cost of Equity -- 3.5.1 The Methods Used -- 3.5.2 The Issues and Ambiguities of the Risk Premiums -- 3.5.3 Estimated Cost of Equity for a Small Business -- 3.5.4 Implementation of the Build-Up Method -- 3.6 Weighted Average Cost of Capital (WACC) -- 3.7 Dividend Discount Model -- 3.8 DCF Case Study (Company SEGY) -- 3.8.1 Free Cash Flows and Assumptions -- 3.8.2 Indirect DCF Method -- Step 1 of the Calculation -- Step 2 of the Calculation, Equity Value Estimate -- 3.8.3 Direct DCF Method -- 3.8.4 Estimated Equity Value -- 3.9 Key Takeaways and Limitations -- References and Further Reading -- 4 Market Approach to Valuation -- 4.1 Precedent Transaction Analysis -- 4.2 The P/E Multiple Approach -- 4.2.1 Potential Valuation Case Study -- 4.2.2 P/E Dynamics -- The Credit Risk Factor -- The Estimated Growth in Net Income -- The Level of Interest Rates -- 4.2.3 P/E Limitations -- 4.3 The EV/EBITDA Multiple Approach -- 4.4 Other Comparative Valuation Approaches -- 4.4.1 The Price-to-Book Value Multiple -- 4.4.2 Cash Flow Multiples -- 4.4.3 Valuation with a Non-Financial Multiple 4.5 Market Multiple Adjustments -- 4.6 Case Study with the P/E and EV/EBITDA Multiples -- 4.6.1 Company Y's Financial Data -- 4.6.2 Comparison Between the P/E and EV/EBITDA Multiples -- 4.6.3 Equity Value Calculation with the Two Sector Multiples -- 4.6.4 Equity Value Calculation with the Leader Multiples -- 4.6.5 Equity Value Calculation with the Laggard Multiples -- 4.6.6 Equity Value Overview -- 4.6.7 The Business Valuation Professional's Decision -- 4.6.8 The Drawbacks of Historical Averages -- 4.7 Key Takeaways and Limitations -- References and Further Reading -- 5 Full Valuation Case Study (Company SEGA) -- 5.1 Generalities on the Applied Valuation Methods -- 5.2 Presentation of Company SEGA -- 5.3 Adjusted Net Asset Value -- 5.3.1 The Adjusted Net Asset Value Method -- Income Statement Adjustments -- Balance Sheet Adjustments -- Adjusted Equity -- 5.3.2 The CEEM or Goodwill Method -- The CEEM Using Excess Operating Earnings -- The CEEM Using Excess Net Earnings -- 5.3.3 Asset-Based Equity Value Estimates -- 5.4 Discounted Cash Flow Methods -- 5.4.1 Valuation According to the Optimistic-Case Scenario -- 5.4.2 Valuation According to the Pessimistic-Case Scenario -- 5.4.3 DCF Value Estimates -- 5.5 Precedent Transaction Analysis and Market Multiple Valuation -- 5.5.1 Precedent Transaction Analysis -- 5.6 Adjusted P/E Multiple -- 5.6.1 Dividend Discount Model -- 5.6.2 EV/EBITDA Multiple Valuation -- 5.6.3 Market Value Estimates -- 5.7 Estimated Equity Value of Company SEGA -- 5.7.1 Results -- 5.7.2 The Valuation Professional's Decision -- References and Further Reading -- General Bibliography, Webography, and Further Reading -- Index Small business Business enterprises-Finance Capital investments Electronic books Erscheint auch als Druck-Ausgabe Coulon, Yannick Small Business Valuation Methods Cham : Springer International Publishing AG,c2021 9783030897185 |
| spellingShingle | Coulon, Yannick Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses Intro -- Preface -- A Practical Book -- The Target of the Book -- The Purpose of the Book -- The Limits of the Book -- Practical Reading of the Book -- Contents -- About the Author -- List of Figures -- List of Tables -- 1 Enterprise Value, Company Value, and Other Essential Financial Data -- 1.1 Definition of Two Essential Aggregates -- 1.1.1 Enterprise Value -- 1.1.2 The Fair Market Value of Equity -- 1.1.3 Case Study Showing the Differences Between the Two Aggregates -- 1.1.4 Fundamental Equations -- 1.1.5 Market Efficiency and Behavioral Finance -- 1.2 The Strategic Positioning of a Company -- 1.3 Method Comparison and a Few Recommendations -- 1.4 Key Takeaways and Limitations -- References and Further Reading -- 2 Asset-Based Approach to Valuation -- 2.1 The Net Worth of a Company -- 2.2 Adjusted Net Asset Value Method -- 2.2.1 Essential Income Statement Adjustments -- Adjustments Due to Under-Investments -- The Business's Owner Remuneration or Compensation Package -- Lease Payments and Rents -- Exclusion of Non-recurring Items -- Case Study of a Normalized Income Statement -- 2.2.2 Essential Asset Adjustments -- The Net Book Value, an Imperfect Valuation Measurement -- The Value of Intangible Assets -- Leased Assets on the Balance Sheet -- Real Estate Valuation Review -- Goodwill Impairment -- 2.2.3 Essential Equity and Liability Adjustments -- The Fair Market Value of Loans -- Convertible Bonds Reclassified as Equity -- Provisions Reclassified as Equity or Debt -- Off Balance Sheet Liabilities -- Minority Interest of Non-controlling Interest -- 2.2.4 Case Study of a Family Owned Real Estate Investment Company -- 2.2.5 Adjusted Net Asset Value Case Study -- 2.3 The Capitalized Excess Earnings or Goodwill Method -- 2.3.1 Intangible Assets and Goodwill -- 2.3.2 Implementation of the CEEM or Goodwill Method -- Excess Net Earnings Excess Operating Earnings -- Excess Earnings Duration -- 2.3.3 Goodwill Valuation Case Study -- Company Euphoria Financial Details -- Excess Net Earnings Method -- Excess Net Operating Earnings Method -- Findings and Conclusion -- 2.4 Key Takeaways and Limitations -- References and Further Reading -- 3 Fundamental Value or DCF Approach to Valuation -- 3.1 Fundamental Value Definition -- 3.2 The Two-Stage DCF Method -- 3.3 Generalities on the Forecast and Scenarios -- 3.4 Free Cash Flows -- 3.4.1 Free Cash Flow to the Firm -- 3.4.2 Free Cash Flow to Equity -- 3.4.3 Company SEGI's Free Cash Flows Case Study -- SEGI's Operating Cash Flow -- SEGI's Investment Cash Flow -- SEGI's Free Cash Flow to the Firm -- SEGI's Free Cash Flow to Equity -- 3.4.4 Free Cash Flow Summary -- 3.5 Cost of Equity -- 3.5.1 The Methods Used -- 3.5.2 The Issues and Ambiguities of the Risk Premiums -- 3.5.3 Estimated Cost of Equity for a Small Business -- 3.5.4 Implementation of the Build-Up Method -- 3.6 Weighted Average Cost of Capital (WACC) -- 3.7 Dividend Discount Model -- 3.8 DCF Case Study (Company SEGY) -- 3.8.1 Free Cash Flows and Assumptions -- 3.8.2 Indirect DCF Method -- Step 1 of the Calculation -- Step 2 of the Calculation, Equity Value Estimate -- 3.8.3 Direct DCF Method -- 3.8.4 Estimated Equity Value -- 3.9 Key Takeaways and Limitations -- References and Further Reading -- 4 Market Approach to Valuation -- 4.1 Precedent Transaction Analysis -- 4.2 The P/E Multiple Approach -- 4.2.1 Potential Valuation Case Study -- 4.2.2 P/E Dynamics -- The Credit Risk Factor -- The Estimated Growth in Net Income -- The Level of Interest Rates -- 4.2.3 P/E Limitations -- 4.3 The EV/EBITDA Multiple Approach -- 4.4 Other Comparative Valuation Approaches -- 4.4.1 The Price-to-Book Value Multiple -- 4.4.2 Cash Flow Multiples -- 4.4.3 Valuation with a Non-Financial Multiple 4.5 Market Multiple Adjustments -- 4.6 Case Study with the P/E and EV/EBITDA Multiples -- 4.6.1 Company Y's Financial Data -- 4.6.2 Comparison Between the P/E and EV/EBITDA Multiples -- 4.6.3 Equity Value Calculation with the Two Sector Multiples -- 4.6.4 Equity Value Calculation with the Leader Multiples -- 4.6.5 Equity Value Calculation with the Laggard Multiples -- 4.6.6 Equity Value Overview -- 4.6.7 The Business Valuation Professional's Decision -- 4.6.8 The Drawbacks of Historical Averages -- 4.7 Key Takeaways and Limitations -- References and Further Reading -- 5 Full Valuation Case Study (Company SEGA) -- 5.1 Generalities on the Applied Valuation Methods -- 5.2 Presentation of Company SEGA -- 5.3 Adjusted Net Asset Value -- 5.3.1 The Adjusted Net Asset Value Method -- Income Statement Adjustments -- Balance Sheet Adjustments -- Adjusted Equity -- 5.3.2 The CEEM or Goodwill Method -- The CEEM Using Excess Operating Earnings -- The CEEM Using Excess Net Earnings -- 5.3.3 Asset-Based Equity Value Estimates -- 5.4 Discounted Cash Flow Methods -- 5.4.1 Valuation According to the Optimistic-Case Scenario -- 5.4.2 Valuation According to the Pessimistic-Case Scenario -- 5.4.3 DCF Value Estimates -- 5.5 Precedent Transaction Analysis and Market Multiple Valuation -- 5.5.1 Precedent Transaction Analysis -- 5.6 Adjusted P/E Multiple -- 5.6.1 Dividend Discount Model -- 5.6.2 EV/EBITDA Multiple Valuation -- 5.6.3 Market Value Estimates -- 5.7 Estimated Equity Value of Company SEGA -- 5.7.1 Results -- 5.7.2 The Valuation Professional's Decision -- References and Further Reading -- General Bibliography, Webography, and Further Reading -- Index Small business Business enterprises-Finance Capital investments |
| title | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_auth | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_exact_search | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_exact_search_txtP | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_full | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_fullStr | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_full_unstemmed | Small Business Valuation Methods How to Evaluate Small, Privately-Owned Businesses |
| title_short | Small Business Valuation Methods |
| title_sort | small business valuation methods how to evaluate small privately owned businesses |
| title_sub | How to Evaluate Small, Privately-Owned Businesses |
| topic | Small business Business enterprises-Finance Capital investments |
| topic_facet | Small business Business enterprises-Finance Capital investments |
| work_keys_str_mv | AT coulonyannick smallbusinessvaluationmethodshowtoevaluatesmallprivatelyownedbusinesses |