Praise for Private Capital Markets
Valuation, Capitalization, and Transfer of Private Business Interests
SECOND EDITION
"In the years since publication of the first edition of Private Capital Markets, the concepts and ideas that it presents have been widely accepted by progressive members of the business valuation community. Now with the Second Edition, author Rob Slee has included empirical data on capital markets for midsized businesses. This book remains a must for everyone involved in appraising, buying, selling, or financing privately owned businesses."
--Raymond C. Miles, founder, The Institute of Business Appraisers
"The Graziadio School of Business has used the Private Capital Markets book for several years with great success. This course, along with the Pepperdine Private Capital Markets Survey project, has helped our students better prepare for careers in middle market companies."
--Linda Livingstone, Dean of the Graziadio School of Business and Management, Pepperdine University
"Our international association of independent M&A professionals recommends this text as the most comprehensive foundation for understanding the private capital marketplace. This book is essential reading for middle market M&A advisors, investors, and other decision-makers in the private capital markets."
--Mike Nall, founder, Alliance of M&A Advisors
A practical road map for making sound investment and financing decisions based on real experiences and market needs
Now fully revised and in a second edition, Private Capital Markets provides lawyers, accountants, bankers, estate planners, intermediaries, and other professionals with a workable framework for making sound investment and financing decisions based on their own needs and experiences.
This landmark resource covers:
* Private business valuation
* Middle market capital sources
* The business ownership transfer spectrum
* And much more
Private Capital Markets, Second Edition surveys the private capital markets and presents the proven guidance you need to navigate through these uncharted waters.
Autorentext
ROBERT T. SLEE, CBA, CM&AA, is President of Robertson & Foley, an investment banking firm that provides valuation, capital raising, and transfer advisory services to middle market companies. He speaks extensively on value creation for private businesses.
Zusammenfassung
Praise for Private Capital Markets
Valuation, Capitalization, and Transfer of Private Business Interests
SECOND EDITION
"In the years since publication of the first edition of Private Capital Markets, the concepts and ideas that it presents have been widely accepted by progressive members of the business valuation community. Now with the Second Edition, author Rob Slee has included empirical data on capital markets for midsized businesses. This book remains a must for everyone involved in appraising, buying, selling, or financing privately owned businesses."
—Raymond C. Miles, founder, The Institute of Business Appraisers
"The Graziadio School of Business has used the Private Capital Markets book for several years with great success. This course, along with the Pepperdine Private Capital Markets Survey project, has helped our students better prepare for careers in middle market companies."
—Linda Livingstone, Dean of the Graziadio School of Business and Management, Pepperdine University
"Our international association of independent M&A professionals recommends this text as the most comprehensive foundation for understanding the private capital marketplace. This book is essential reading for middle market M&A advisors, investors, and other decision-makers in the private capital markets."
—Mike Nall, founder, Alliance of M&A Advisors
A practical road map for making sound investment and financing decisions based on real experiences and market needs
Now fully revised and in a second edition, Private Capital Markets provides lawyers, accountants, bankers, estate planners, intermediaries, and other professionals with a workable framework for making sound investment and financing decisions based on their own needs and experiences.
This landmark resource covers:
- Private business valuation
- Middle market capital sources
- The business ownership transfer spectrum
- And much more
Private Capital Markets, Second Edition surveys the private capital markets and presents the proven guidance you need to navigate through these uncharted waters.
Inhalt
Foreword xv
Preface xix
Acknowledgments xxiii
CHAPTER 1 Capital Markets 1
Market Structure 2
Information 2
Why Are Markets Segmented? 8
CHAPTER 2 Middle-Market Finance 17
Middle-Market Finance Theory 18
Triadic Logic 19
Middle-Market Finance Theory in Practice 19
Owner Motives 27
Authority 28
Triangulation 29
PART ONE Business Valuation
CHAPTER 3 Private Business Valuation: Introduction 35
Private Investor Expectations Drive Private Valuation 36
Private Business Valuation Can Be Viewed through Value Worlds 39
Valuation as a Range Concept 51
Triangulation 54
CHAPTER 4 Market Value 57
Levels of Private Ownership 61
Triangulation 67
CHAPTER 5 Asset Subworld of Market Value 69
Steps to Derive Net Asset Value 73
Triangulation 73
CHAPTER 6 Financial Subworld of Market Value 75
Specific Investor Return 82
Specific Industry Return 84
General Investor Returns 87
Triangulation 90
CHAPTER 7 Synergy Subworld of Market Value 93
Synergies 97
Capitalization of Benefit Streams 104
Discounting of Benefit Streams 104
Seller/Buyer Market Valuation 105
Nonenterprise Market Valuations 108
Triangulation 108
CHAPTER 8 Fair Market Value 111
Appraisal Organizations 113
Business Appraisal Standards 114
Fair Market Value Process 115
Key Steps to Derive Fair Market Value 125
Does the Fair Market Value Process Make Sense? 126
Tearing Down the Buildup Models 129
Triangulation 130
CHAPTER 9 Fair Value 133
Dissenting and Oppressed Shareholders 133
Triggering Events 134
Determination of Fair Value 137
Triangulation 140
CHAPTER 10 Incremental Business Value 143
Nature of Incremental Business Value 144
Problems with Using Traditional Methods 146
Value-Based Approaches 146
Net Present Value 146
Incremental Business Value 148
Private Cost of Capital Model 151
Ramifications of Using PCOC 155
Investment 156
Project Decision Making 158
Problems with Incremental Business Value 158
Value-Creation Strategies 158
Increase Recast EBITDA 159
Reduce Risk 160
Employ High-Yielding Capital 160
Incremental Business Value versus Market Value 161
Triangulation 162
CHAPTER 11 Insurable Value 165
Risk and Insurance 165
Buy/Sell Agreements 167
Valuation Mechanics 168
Triggering Events 170
Key Person Insurance 172
Business Interruption 174
Triangulation 177
CHAPTER 12 FASB Value Worlds 179
FASB Fair Value (ASC 820, Formerly FAS 157) 179
Business Combinations (ASC 805, Formerly FAS 141R) 184
Impaired Goodwill (ASC 350-20) 186
Valuation 189
Triangulation 192
CHAPTER 13 Intangible Asset Value 195
Subworlds 197
Intellectua…