| Business Valuation Principles | p. 1 |
| Exposing the Eight Myths of Business Valuations | p. 3 |
| When Selling a Business or Applying for a Loan | p. 4 |
| Basing Value on Earnings | p. 5 |
| When Compared to Another Company | p. 6 |
| Five Times Earnings | p. 6 |
| Loss Businesses are Worthless | p. 7 |
| Business Owners Know Best | p. 8 |
| Two Times Revenue | p. 9 |
| In the Eye of the Beholder | p. 9 |
| Lack of Business Appraisal Standards | p. 10 |
| The Basics | p. 13 |
| Terminology | p. 15 |
| Cash Is King | p. 21 |
| The Business Valuation Process | p. 24 |
| Discounting Future Returns and Other Theoretical Methods | p. 31 |
| The Capital Market Theory | p. 32 |
| Discounted Cash Flow | p. 34 |
| Continuing Value | p. 46 |
| The Excess Earnings Method | p. 48 |
| The Asset Value Method | p. 51 |
| Gathering Data | p. 53 |
| Initial Due Diligence | p. 54 |
| Accumulating and Assimilating Data | p. 57 |
| Interviewing Management Personnel | p. 59 |
| Internal Reports | p. 64 |
| Contracts, Leases, Appraisals, Claims | p. 65 |
| Economic and Industry Data | p. 67 |
| Restructuring Financial Statements | p. 71 |
| Receivables and Revenue Recognition | p. 72 |
| LIFO Versus FIFO Inventory Valuation | p. 74 |
| Leases | p. 75 |
| Intangibles | p. 77 |
| Pension Liability | p. 78 |
| Purchase Accounting Adjustments | p. 79 |
| Intercompany Pricing and Investment | p. 80 |
| Nonrecurring Events | p. 81 |
| Owner/Manager's Compensation and Expenses | p. 82 |
| Impact of Inflation | p. 84 |
| Ratio and Risk Analyses | p. 85 |
| Debt Utilization Ratios | p. 89 |
| Liquidity Ratios | p. 90 |
| Profitability Ratios | p. 91 |
| Asset Utilization Ratios | p. 93 |
| Risk Analysis | p. 96 |
| Qualitative Valuation Measures | p. 101 |
| A Cash Flow Forecasting Model | p. 105 |
| Economic and Business Assumptions | p. 106 |
| Sales Forecast | p. 107 |
| Purchased Materials Forecast | p. 109 |
| Direct Labor Forecast | p. 110 |
| Cost/Sales/Asset Functional Relationships | p. 111 |
| Inventory Forecast | p. 113 |
| Operating Expenses Forecast | p. 114 |
| Statement of Income Forecast | p. 118 |
| Balance Sheet Forecast | p. 120 |
| Cash Flow Forecast | p. 123 |
| Putting It All Together | p. 127 |
| Ratio and Risk Analysis | p. 133 |
| Evaluation of Qualitative Factors | p. 138 |
| Choosing a Capitalization Rate | p. 139 |
| Discounting Cash Flow to Debtholders | p. 142 |
| Calculation of Continuing Value | p. 143 |
| The Final Calculation | p. 144 |
| Conducting Research on the Internet | p. 147 |
| Using the Internet for Comparative Analysis | p. 147 |
| North American Industry Classification System | p. 149 |
| Sources of Government Data | p. 150 |
| Sources of Publicly Traded Company Data | p. 151 |
| Sources of Data for Privately Held Companies | p. 153 |
| Buy/Sell Data | p. 155 |
| Internet Addresses | p. 157 |
| Valuations for Special Situations | p. 159 |
| Minority Interests | p. 161 |
| Pro Rata Share of Total Business Value | p. 163 |
| Minority Interest Discount | p. 164 |
| Separate Calculation for the Present Value of Minority Benefits | p. 166 |
| Minority Interests in Micro Businesses | p. 169 |
| Debt Securities | p. 171 |
| Reasons for Valuing Debt Securities | p. 172 |
| Fundamentals of Debt Valuation | p. 174 |
| Defaulted Debt Obligations | p. 183 |
| Sale/Leaseback of Hard Assets | p. 186 |
| Securitization | p. 188 |
| Buyout Agreements | p. 191 |
| Valuation Theory | p. 193 |
| Independent Appraisals | p. 196 |
| Negotiating a Value | p. 197 |
| Repurchase Agreement Funding and Terms | p. 198 |
| Cross-Purchase Agreements | p. 203 |
| Multibusinesses | p. 209 |
| Defining and Collecting Data by Business Segment | p. 210 |
| Business Segment Pro Forma Forecasts | p. 212 |
| Corporate Office Cost Center | p. 216 |
| Present Value Comparisons by Business Segment | p. 220 |
| Consolidated Valuation | p. 227 |
| Valuations for Special Types of Companies | p. 231 |
| Micro Businesses | p. 233 |
| Valuation Alternatives | p. 234 |
| Reconstructing Cash Flows and Asset Values | p. 244 |
| Valuation Effects of Stock or Asset Sale | p. 246 |
| Valuing Deferred Payments | p. 247 |
| Professional Practices and Personal Service Companies | p. 251 |
| The Uniqueness of Professional Practices and Personal Service Companies | p. 252 |
| Goodwill | p. 254 |
| Measuring Goodwill | p. 256 |
| Financial Analysis | p. 257 |
| Valuation Calculations | p. 262 |
| Real Estate-Based Businesses | p. 267 |
| Market and Competitive Factors | p. 268 |
| Competitive Analysis | p. 272 |
| Forecasting Market Share and Occupancy | p. 275 |
| Forecasting Average Room Rate per Occupied Room | p. 279 |
| Forecasting Expenses | p. 280 |
| Income Capitalization Valuation | p. 282 |
| Internal Rate of Return Method | p. 284 |
| Start-Up Businesses | p. 289 |
| Valuing Ideas | p. 290 |
| Three Value-Building Criteria | p. 291 |
| Building a Customer Base | p. 293 |
| Trade Shows | p. 294 |
| Publicity | p. 295 |
| Advertising | p. 296 |
| Calculating Business Value | p. 297 |
| Conclusion | p. 299 |
| Index | p. 301 |
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