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The Business Valuation Bench Book

The Business Valuation Bench Book

If you are an attorney or a judge navigating business valuation concepts and calculations in financial experts' reports, you'll want this practical reference guide on your bookshelf. If you are a valuation expert, you will want to see what the attorneys and judges are reading. The Business Valuation Bench Book, which is already used by leading judges who need to evaluate expert testimony, gives you the guidance and tools to better assess the facts and analysis made by business valuation experts. Written by top financial experts William J. Morrison and Jay E. Fishman who have appeared in front of hundreds of judges, frequently in high-profile cases, this must-have resource addresses fundamental business valuation concepts in an easy-to-use format. Take advantage of the authors' decades of experience with in-depth insight into the business valuation process and detailed explanations of valuation approaches. With 12 appendices, two thorough case studies, and suggestions on the questions to ask valuation experts, you will be able to confidently compare and critique valuation expert reports.

Highlights of the Bench Book include:

  • Work with the valuation issues presented in court more efficiently and effectively - Each section of the guide presents the main valuation concepts in a bulleted format followed by detailed explanations and worksheets, which the trier of fact can use to compare the critical components of each expert’s report and the judgments he or she used to reach their conclusion of value
  • Navigate complex business valuation concepts - The authors walk through a case study of a clothing store and a real estate holding company to illustrate the concepts and calculations involved in valuing different types of companies
  • Confidently assess the facts, analysis and judgments made by the business valuation experts and the conclusions they draw - With comprehensive examples, the guide demonstrates how even small changes in the critical components affect the conclusion of value. Each section includes “Questions to Ask,” which presents a framework to inquire about the underlying facts and reasoning behind the expert’s judgments and opinion
  • Better compare and critique expert reports - This must-have resource includes 12 appendices for easy reference, including:
  • A reference chart on goodwill jurisprudence by state
  • Seven worksheets which can be used to dissect and compare the experts’ opinions on the critical components of their valuation
  • An explanation of discounts for lack of control and lack of marketability
  • A glossary of valuation terms
  • A list of questions to ask experts
  • A bulleted reference guide to important valuation concepts


Introduction
Learning Objectives
Chapter 1. Business Valuation Concepts
Chapter 2. Approaches to Value
Chapter 3. Income Approach
Income Capitalization Method
Normalized Earnings
Income to Capitalize
Capitalization Rate
Summary
Discounted Cash Flow Method
Chapter 4. Asset-Based Approach
Net Asset Value Method
Chapter 5. Hybrid Excess-Earnings Method
Chapter 6. Market Approach
Summary
Appendices
Appendix 1. Charting Goodwill Jurisprudence
Appendix 2. Normalization Adjustment Comparison
Appendix 3. Income to Capitalize Comparison
Appendix 4. Cap Rate Comparison
Appendix 5. Discounted Cash Flow Comparison
Appendix 6. Net Assets Comparison
Appendix 7. Excess Earnings Comparison
Appendix 8. Transaction Multiples Comparison
Appendix 9. The Basics of Discounts
Discount for Lack of Control
Discount for Lack of Marketability
Other Discounts
Appendix 10. Glossary of Business Valuation Terms
Appendix 11. Business Valuation Bench Book Questions
Appendix 12. Business Valuation Bench Book Reference Guide

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