{"product_id":"quantitative-business-valuation-a-mathematical-approach-for-todays-professionals-hardback-9780470390160","title":"Quantitative Business Valuation; A Mathematical Approach for Today's Professionals (Hardback) 9780470390160","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eQuantitative Business Valuation\u003c\/font\u003e\u003cbr\u003e\r\n\u003cfont size=\"5\"\u003eA Mathematical Approach for Today's Professionals\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\u003cp\u003e\u003cfont size=\"4\"\u003eJay B. Abrams (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780470390160, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 16 April 2010\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e672 pages\u003cbr\u003e26 x 18.7 x 5.1 cm, 1.334 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cp\u003e\u003cb\u003eQuantitative Business Valuation\u003c\/b\u003e A Mathematical Approach for Today's Professionals \u003c\/p\u003e\n\u003cp\u003eEssential reading for the serious business appraiser, \u003ci\u003eQuantitative Business Valuation, Second Edition\u003c\/i\u003e is the definitive guide to quantitative measurements in the valuation process. No other book written on business valuation is as well researched, innovative, and bottom-line beneficial to you as a practitioner. \u003c\/p\u003e\n\u003cp\u003eWritten by leading valuation and litigation economist Jay B. Abrams, this text\u003ci\u003e\u003c\/i\u003e is a rigorous and eye-opening treatment filled with applications for a wide variety of scenarios in the valuation of your privately held business. \u003c\/p\u003e\n\u003cp\u003eSubstantially revised for greater clarity and logical flow, the \u003ci\u003eSecond Edition\u003c\/i\u003e includes new coverage of: \u003c\/p\u003e\n\u003cul\u003e \u003cli\u003eConverting forecast net income to forecast cash flow\u003c\/li\u003e \u003cli\u003eDamages in manufacturing firms\u003c\/li\u003e \u003cli\u003eRegressing scaled \u003ci\u003ey\u003c\/i\u003e-variables as a way to control for heteroscedasticity\u003c\/li\u003e \u003cli\u003eMathematical derivation of the Price-to-Sales (PS) ratio\u003c\/li\u003e \u003cli\u003eMonte Carlo Simulation (MCS) and Real Options (RO) Analysis\u003c\/li\u003e \u003cli\u003eVenture capital and angel investor rates of return\u003c\/li\u003e \u003cli\u003eLost inventory and lost profits damage formulas in litigation\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eOrganized into seven sections, the first three parts of this book follow the chronological sequence of performing a discounted cash flow. The fourth part puts it all together, covering empirical testing of Abrams' valuation theory and measuring valuation uncertainty and error. Parts five to seven round it all out with discussion of litigation, valuing ESOPs and partnership buyouts, and probabilistic methods including valuing start-ups. \u003c\/p\u003e\n\u003cp\u003eThe resulting work, solidly grounded in economic theory and including all necessary mathematics, integrates existing science into the valuation profession—and develops valuation formulas and models that you will find useful on a daily basis.\u003c\/p\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003eList of Tables and Figures xiii\u003c\/p\u003e \u003cp\u003eIntroduction xxi\u003c\/p\u003e \u003cp\u003eAcknowledgments xxvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I \u003c\/b\u003e\u003cb\u003eForecasting Cash Flow 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 \u003c\/b\u003e\u003cb\u003eCash Flow: A Mathematical Derivation 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 7\u003c\/p\u003e \u003cp\u003eThe Mathematical Model 11\u003c\/p\u003e \u003cp\u003eAnalysis of the Mathematical Model 25\u003c\/p\u003e \u003cp\u003eSummary 27\u003c\/p\u003e \u003cp\u003eReferences 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 \u003c\/b\u003e\u003cb\u003eForecasting Cash Flow: Mathematics of the Payout Ratio 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 31\u003c\/p\u003e \u003cp\u003eThe Mathematics 32\u003c\/p\u003e \u003cp\u003eForecasting Gross Cash Flow Is Incorrect 43\u003c\/p\u003e \u003cp\u003eConclusion 44\u003c\/p\u003e \u003cp\u003eReferences 44\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 \u003c\/b\u003e\u003cb\u003eUsing Regression Analysis 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 47\u003c\/p\u003e \u003cp\u003eForecasting Costs and Expenses 48\u003c\/p\u003e \u003cp\u003ePerforming Regression Analysis 51\u003c\/p\u003e \u003cp\u003eUse of Regression Statistics to Test the Robustness of the Relationship 52\u003c\/p\u003e \u003cp\u003eProblems with Regression Analysis for Forecasting Costs 63\u003c\/p\u003e \u003cp\u003eUsing Regression Analysis to Forecast Sales 64\u003c\/p\u003e \u003cp\u003eAutocorrelation in Time Series Analysis 69\u003c\/p\u003e \u003cp\u003eApplication of Regression Analysis to the Guideline Company (GC) Methods 69\u003c\/p\u003e \u003cp\u003eSummary 73\u003c\/p\u003e \u003cp\u003eReferences 74\u003c\/p\u003e \u003cp\u003eAppendix 3A The ANOVA Table (Table A3.1, Rows 28–32) 75\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 \u003c\/b\u003e\u003cb\u003eAnnuity Discount Factors and the Gordon Model 79\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 81\u003c\/p\u003e \u003cp\u003eADF with End-of-Year Cash Flows 83\u003c\/p\u003e \u003cp\u003eMidyear Cash Flows 91\u003c\/p\u003e \u003cp\u003eStarting Periods Other Than Year 1 93\u003c\/p\u003e \u003cp\u003ePeriodic Perpetuity Factors (PPFs): Perpetuities for Periodic Cash Flows 101\u003c\/p\u003e \u003cp\u003eADFs in Loan Mathematics 107\u003c\/p\u003e \u003cp\u003eRelationship of the Gordon Model to the Price\/Earnings and Price\/Sales Ratios 110\u003c\/p\u003e \u003cp\u003eThe Bias in Annual (versus Monthly) Discounting Is Immaterial 113\u003c\/p\u003e \u003cp\u003eConclusions 119\u003c\/p\u003e \u003cp\u003eReferences 121\u003c\/p\u003e \u003cp\u003eAppendix 4A Mathematical Appendix 123\u003c\/p\u003e \u003cp\u003eAppendix 4B Mathematical Appendix: Monthly ADFs 141\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II \u003c\/b\u003e\u003cb\u003eCalculating Discount Rates 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 \u003c\/b\u003e\u003cb\u003eDiscount Rates as a Function of Log Size 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eResearch Included in the First Edition 151\u003c\/p\u003e \u003cp\u003eTable 5.1: Analysis of Historical Stock Returns 152\u003c\/p\u003e \u003cp\u003eApplication of the Log Size Model 167\u003c\/p\u003e \u003cp\u003eDiscussion of Models and Size Effects 181\u003c\/p\u003e \u003cp\u003eIndustry Effects 191\u003c\/p\u003e \u003cp\u003eThe Wedge between Public and Private Firm Valuations 192\u003c\/p\u003e \u003cp\u003eSatisfying Revenue Ruling 59-60 196\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 198\u003c\/p\u003e \u003cp\u003eReferences 199\u003c\/p\u003e \u003cp\u003eAppendix 5A Automating Iteration Using Newton’s Method 203\u003c\/p\u003e \u003cp\u003eAppendix 5B Mathematical Appendix 207\u003c\/p\u003e \u003cp\u003eAppendix 5C Abbreviated Review and Use 211\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 \u003c\/b\u003e\u003cb\u003eArithmetic versus Geometric Means: Empirical Evidence and Theoretical Issues 223\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 225\u003c\/p\u003e \u003cp\u003eTheoretical Superiority of the Arithmetic Mean 226\u003c\/p\u003e \u003cp\u003eEmpirical Evidence of the Superiority of the Arithmetic Mean 227\u003c\/p\u003e \u003cp\u003eIndro and Lee Article 232\u003c\/p\u003e \u003cp\u003eReferences 233\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 \u003c\/b\u003e\u003cb\u003eAn Iterative Valuation Approach 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 237\u003c\/p\u003e \u003cp\u003eEquity Valuation Method 237\u003c\/p\u003e \u003cp\u003eInvested Capital Approach 243\u003c\/p\u003e \u003cp\u003eLog Size 245\u003c\/p\u003e \u003cp\u003eSummary 245\u003c\/p\u003e \u003cp\u003eReferences 247\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III \u003c\/b\u003e\u003cb\u003eAdjusting for Control and Marketability 249\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 \u003c\/b\u003e\u003cb\u003eAdjusting for Levels of Control and Marketability 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 257\u003c\/p\u003e \u003cp\u003eThe Value of Control and Adjusting for Level of Control 257\u003c\/p\u003e \u003cp\u003eDiscount for Lack of Marketability (DLOM) 301\u003c\/p\u003e \u003cp\u003eConclusion 358\u003c\/p\u003e \u003cp\u003eReferences 359\u003c\/p\u003e \u003cp\u003eAppendix 8A Mathematical Appendix 365\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV \u003c\/b\u003e\u003cb\u003ePutting It All Together 375\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 \u003c\/b\u003e\u003cb\u003eEmpirical Testing of Abrams’s Valuation Theory 377\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 379\u003c\/p\u003e \u003cp\u003eTable 9.1: Log Size for 1938–1986 380\u003c\/p\u003e \u003cp\u003eTable 9.2: Reconciliation to the IBA Database 382\u003c\/p\u003e \u003cp\u003eCalculation of DLOM 387\u003c\/p\u003e \u003cp\u003eInterpretation of the Error 400\u003c\/p\u003e \u003cp\u003eConclusion 401\u003c\/p\u003e \u003cp\u003eReferences 401\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 \u003c\/b\u003e\u003cb\u003eMeasuring Valuation Uncertainty and Error 403\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 405\u003c\/p\u003e \u003cp\u003eMeasuring Valuation Uncertainty 406\u003c\/p\u003e \u003cp\u003eMeasuring the Effects of Valuation Error 410\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 422\u003c\/p\u003e \u003cp\u003eReference 423\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart V \u003c\/b\u003e\u003cb\u003eLitigation 425\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 \u003c\/b\u003e\u003cb\u003eDemonstrating Expert Bias 427\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 429\u003c\/p\u003e \u003cp\u003eMarket Methods 429\u003c\/p\u003e \u003cp\u003eA Balanced DCF Valuation 432\u003c\/p\u003e \u003cp\u003eSummary 434\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 \u003c\/b\u003e\u003cb\u003eLost Inventory and Lost Profits Damage Formulas in Litigation 435\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 437\u003c\/p\u003e \u003cp\u003eCommentary to Table 12.1: Sample Damage Calculations with \u003ci\u003eVM \u003c\/i\u003e= $95 438\u003c\/p\u003e \u003cp\u003eTable 12.1B: Lost Profits Formulas Based on EBITDA for Lost Sales on Inventory Never Produced 445\u003c\/p\u003e \u003cp\u003eWhen Reality May Vary with Our Assumptions 446\u003c\/p\u003e \u003cp\u003eModification of Formulas for Wholesale and Retail Businesses 447\u003c\/p\u003e \u003cp\u003eLegal Treatment 447\u003c\/p\u003e \u003cp\u003eSummary 448\u003c\/p\u003e \u003cp\u003eReference 448\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart VI \u003c\/b\u003e\u003cb\u003eValuing Esops and Buyouts of Partners and Shareholders 449\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 \u003c\/b\u003e\u003cb\u003eESOPs: Measuring and Apportioning Dilution 451\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 453\u003c\/p\u003e \u003cp\u003eDefinitions of \u003ci\u003eDilution \u003c\/i\u003e454\u003c\/p\u003e \u003cp\u003eTable 13.1: Calculation of Lifetime ESOP Costs 456\u003c\/p\u003e \u003cp\u003eThe Direct Approach 457\u003c\/p\u003e \u003cp\u003eThe Iterative Approach 466\u003c\/p\u003e \u003cp\u003eSummary 469\u003c\/p\u003e \u003cp\u003eReferences 474\u003c\/p\u003e \u003cp\u003eAppendix 13A Mathematical Appendix 475\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 \u003c\/b\u003e\u003cb\u003eThe Trade-off in Selling to an ESOP versus an Outside Buyer 477\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSection 1: Introduction 479\u003c\/p\u003e \u003cp\u003eSection 2: Advantages and Disadvantages of Selling to an ESOP versus a Third Party 480\u003c\/p\u003e \u003cp\u003eSection 3: The Mathematics 481\u003c\/p\u003e \u003cp\u003eSection 4: Sample Calculations in the Tables 486\u003c\/p\u003e \u003cp\u003eSection 5: Conclusion 494\u003c\/p\u003e \u003cp\u003eReferences 494\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 \u003c\/b\u003e\u003cb\u003eBuyouts of Partners and Shareholders 497\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 499\u003c\/p\u003e \u003cp\u003eTable 15.1: Pre- and Post-Transaction Valuations 499\u003c\/p\u003e \u003cp\u003eTable 15.2: Dilution in FMV as a Result of the Partner Buyout 501\u003c\/p\u003e \u003cp\u003eSharing the Dilution 503\u003c\/p\u003e \u003cp\u003eConclusion 506\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart VII \u003c\/b\u003e\u003cb\u003eProbabilistic Methods 507\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 \u003c\/b\u003e\u003cb\u003eValuing Start-Ups 511\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIssues Unique to Start-Ups 513\u003c\/p\u003e \u003cp\u003eOrganization of the Chapter 513\u003c\/p\u003e \u003cp\u003ePart 1: First Chicago Approach 514\u003c\/p\u003e \u003cp\u003eVenture Capital Valuation Approach 520\u003c\/p\u003e \u003cp\u003ePart 2: Debt Restructuring Study 521\u003c\/p\u003e \u003cp\u003ePart 3: Exponentially Declining Sales Growth Model 534\u003c\/p\u003e \u003cp\u003eReferences 536\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 \u003c\/b\u003e\u003cb\u003eMonte Carlo Risk Simulation, by Dr. Johnathan Mun 539\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Monte Carlo Risk Simulation? 541\u003c\/p\u003e \u003cp\u003eComparing Simulation with Traditional Analyses 543\u003c\/p\u003e \u003cp\u003eRunning a Monte Carlo Simulation Using Risk Simulator 543\u003c\/p\u003e \u003cp\u003eUsing Forecast Charts and Confidence Intervals 554\u003c\/p\u003e \u003cp\u003eTornado and Sensitivity Tools in Simulation 556\u003c\/p\u003e \u003cp\u003eSensitivity Analysis 563\u003c\/p\u003e \u003cp\u003eDistributional Fitting: Single Variable and Multiple Variables 567\u003c\/p\u003e \u003cp\u003eGetting the Risk Simulator Software 571\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 \u003c\/b\u003e\u003cb\u003eReal Options, by Dr. Johnathan Mun 573\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePart 1: Introduction to Real Options 575\u003c\/p\u003e \u003cp\u003ePart 2: Traditional Valuation Approaches 585\u003c\/p\u003e \u003cp\u003ePart 3: Application: Real Options SLS Software 597\u003c\/p\u003e \u003cp\u003eGlossary 617\u003c\/p\u003e \u003cp\u003eAbout the Author 621\u003c\/p\u003e \u003cp\u003eIndex 623\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52276215251224,"sku":"9780470390160","price":71.99,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780470390160_173361.jpg?v=1781365249","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/quantitative-business-valuation-a-mathematical-approach-for-todays-professionals-hardback-9780470390160","provider":"Freshly Printed Books","version":"1.0","type":"link"}