Business Valuation Techniques

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USBX
Online investment bank providing business valuations and advisory services. Features include marketplace for buying and selling small-to-medium sized businesses, free valuation tool, M&A legal forms and industry research.

 
Aswath Damadoran: Value of a Brand Name (pdf)
Discussion of the value of a corporate brand name, and the relation to overall firm value (pdf version, requires Adobe Acrobat).

 
Aswath Damadoran: Warrants and Equity Shares in Company Valuation (pdf)
Accounting for warrants and equity shares when valuing a firm (pdf version, requires Adobe Acrobat).

 
Arrow Business Appraisers: Business Valuations
Offers summary and certified appraisals for acquisitions, buy-outs, divorce, gift and estate taxes. Sample report available.

 
Aswath Damadoran: Models of Risk and Return
Discussion of models for valuing a firm, including: the capital asset pricing model, and multi-factor models.

 
Valuing Your Company
Discusses various methods for valuing a business from capitalized earning approach to valuation of intangible assets.

 
Diomo Corporation: Business Valuation Techniques
Provides a detailed guide and personalized consulting on buying a business, including valuation, financing the purchase, and negotiating strategies.

 
Stochastic Calculus and Finance
Paper that covers financial calculus and differential equations, binomial and arbitrage pricing, CAPM and APT and applications for pricing options, interest rate derivatives and term structure.

 
Business Valuation Research Institute
Links to relevant business valuation web sites, a database of businesses recently bought and sold, and a chat room. Registration required.

 
C&S Associates Business Valuation Report
For a $20 fee, the firm allows users to access its business valuation tool.

 
Formula Sheet
Professor Puneet Handa at the University of Iowa's business school offers a MS Word document with finance formulas.

 
Aswath Damadoran: Value of a Brand Name
Discussion of the value of a corporate brand name, and the relation to overall firm value.

 
PPC's Business Valuation Specialist
A tool that provides small- and medium-sized businesses with a comprehensive valuation report.

 
Business Book Press: Business Valuation Techniques
MS Excel-based program for business buyers and sellers to determine the fair-market value of a business without complicated theory and mathematics.

 
Valuer
Valuation tool that uses cash-flow analysis and macroeconomic variables to compute the value of a business.

 
BIZStrat Strategic Management: Financial Analysis Ratios
Provides examples and explanations of profit, liquidity, activity, leverage, and shareholder-return ratios.

 
Biz/ed: Financial Ratios
Provides an overview of profitability, short-term and long-term liquidity ratios.

 
Aswath Damadoran: Spreadsheet for Valuing Synergy in a Merger
A spreadsheet designed to help an analyst value the synergystic cost savings and expected additional revenue of a merger.

 
CPA Journal: Fair Market Value of Closely Held Business Interests
An article in the May, 2000 issue.

 
New online business e-valuation tools: Useful, but you still need the human touch
June 2000 article by Jay MacDonald at Bankrate.com.

 
Aswath Damadoran: Valuing the Option to Expand
A spreadsheet useful in determining the value of expanding via a project or acquisition.

 
MBAWare.com: Business Valuation Techniques
Offers business valuation software to automate the valuation process, statistics for accurate valuation assumptions and books on valuation theory.

 
PrivateCo.com
Online valuation advisory service for small- to medium-sized businesses. Offers valuation tools, sales and cash-flow forecasting, along with industry comparisons.

 
Improving Decision Making with Simple Break-Even Analysis
Article discussing how to use break-even analysis.

 
Valuing Shares of a Closely Held Corporation
An article provided by Business Valuation Services.

 
Aswath Damadoran: The Corporate Finance Objective (pdf)
A detailed discussion of the objective in corporate finance, namely the often conflicting goals of maximizing firm and shareholder value (pdf version, requires Adobe Acrobat).

 
BIZCOMPS
Provides a database searchable by SIC code to find comparable sales transactions to establish an estimated value of a business.

 
Aswath Damadoran: Valuing Cash in a Firm (pdf)
A discussion of the process for valuing the cash component of a firm's balance sheet (pdf version, requires Adobe Acrobat).

 
The Conference Board of Canada: Financial Statement Analysis
Online tutorial workbook titled Business Basics for the Workplace explains the basics of financial statement analysis.

 
National Association of Certified Valuation Analysts
Provider of business valuation software, Valuation Master 6.0, for a fee.

 
Capital.com
Marketplace of financial sources competing to provide debt, equity, and business loans for acquisitions, leveraged buyouts, working capital, and accounts receivable financing.

 
Aswath Damadoran: Valuing Amazon.com (pdf)
An approach to valuing high growth firms, especially internet companies, using Amazon.com as an example (pdf version, requires Adobe Acrobat).

 
Business Owner's Toolkit: Financial Ratios
A list of financial ratios, how they are calculated and how it measures a business's financial health.

 
Business Book Press: Valuing A Business For Sale And Other Issues
Provides issues to consider when valuing a business.

 
Business ValueXpress: Business Valuation Techniques
Offers M&A software for creating live, interactive business valuation simulations, with integrated price, deal terms, and deal structure details.

 
Aswath Damadoran: Valuing Private Firms and Divisions (pdf)
Valuation models, deciding factors, and estimation parameters for valuing private firms and divisions of corporations (pdf version, requires Adobe Acrobat).

 
Aswath Damadoran: Valuing the Option to Delay
A spreadsheet useful in determining the value of delaying a project or acquisition.

 
What’s My Company Worth? A Case Study
An article by Business Valuation Services.

 
Aswath Damadoran: Basics of Firm Valuation (pdf)
A discussion of various methods for valuing a firm (pdf version, Adobe Acrobat required).

 
White Nagle Mazza & Associates
Consulting group that provides business valuation, profit counseling, value engineering, and sale and divestiture counseling to business enterprises.

 
CFO.com Mergers & Acquisitions
News, analysis and valuation tools for mergers and acquistions.

 
ValuationResources.com
Business valuation resources including valuation publications, industry resources, economic data, public company information, mergers and acquisitions data, legal and tax resources, and more.

 
Valuing A Family Business
An article provided by Business Valuation Services.

 
Aswath Damadoran: Measuring Investment Returns (pdf)
A discussion of the process of measuring investment returns from projects or acquisitions (pdf version, requires Adobe Acrobat).

 
MoneySoft: Corporate Valuation
Maker of a corporate valuation tool that guides users through the process of analyzing and valuing a closely held company.

 
Aswath Damadoran: Corporate Finance Big Picture (pdf)
A schematic outlining the investment, financing, and dividend decisions facing an analyst in defining firm value (pdf version, requires Adobe Acrobat).

 
Aswath Damadoran: Opportunity Costs and Measuring Investment Returns (pdf)
Analysis of critical issues when determining investment returns, including correctly accounting for opportunity costs.

 
Aswath Damadoran: Valuing Private Firms and Divisions
Valuation models, deciding factors, and estimation parameters for valuing private firms and divisions of corporations.

 
Aswath Damadoran: Estimating Capital Asset Pricing Model Values
A spreadsheet for determining the input values for the capital asset pricing model. Useful in determining firm value, and thereby imputing equity value.

 
Strategic Valuation Associates: Business Valuation Technique
Provides financial services including business valuation, business plan and financial model development, and assessment of strategic opportunities.

 
Aswath Damadoran: Hurdle Rates and Risk Premia (pdf)
An in-depth discussion of the calculation of hurdle rates, risk premia, beta, and alpha used in firm valuation (pdf version, requires Adobe Acrobat).

 
Business Owner's Toolkit: Business Ratios
Explanations on liquidity, efficiency, profitability, and solvency ratios.

 
Capital.com Business Valuation Tool
Customized input capabilities and detailed cash flow, fair market and comparitive analysis.

 
Common Errors in Business Valuation Reports
Provides analyses methods used to arrive at fair market value in transfer of wealth and estate tax returns.

 
Finding the Value of a Family-Limited Partnership
An article provided by Business Valuation Services.

 
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