Valuation for M&A: Building and Measuring Private Company Value, Third Edition

April 2018 978-1-119-43738-3 Hardcover (496 pages)

Chris Mellen, Frank Evans

John Wiley & Sons, Inc.

Valuation for M&A lays out the steps for measuring and managing value creation in non-publicly traded entities, and helps investors, executives, and their advisors determine the optimum strategy to enhance both market value and strategic value and maximize return on investment.

As a starting point in planning for a transaction, it is helpful to compute fair market value, which represents a “floor” value for the seller since it by definition represents a value agreed upon by any hypothetical willing and able buyer and seller.  But for M&A, it is more important to compute investment value, which is the value of the target company to a strategic buyer (and which can vary with each prospective buyer). This must-have reference includes all the necessary tools you need to build and measure private company value.

  • Prepare for the sale and acquisition of a firm
  • Identify, quantify, and qualify the synergies that increase value to strategic buyers
  • Get access to new chapters on fairness opinions and professional service firms
  • Find a discussion of Roger Grabowski's writings on cost of capital, cross-border M&A, private cost of capital, intangible capital, and asset vs. stock transactions

Table of Contents



Dedication and Acknowledgements

I. Introduction

1. Winning through Mergers and Acquisitions

II. Building Value

2. Building Value and Measuring Return on Investment in a Private Company

3. Market and Competitive Analysis

4. Merger and Acquisition Market and Planning Process

5. Measuring Synergies

III. Measuring Value

6. Valuation Approaches and Fundamentals

7. Income Approach:  Using Expected Future Rates to Establish Value

8. Cost of Capital Essentials

9. Weighted Average Cost of Capital

10. Market Approach:  Using Guideline Public Companies and M&A Transactions

11. Asset Approach

12. Adjusting Value through Premiums and Discounts

13. Reconciling Initial Value Estimates and Determining Value Conclusion

IV. Specialty Issues

14. Exit Planning

15. Art of the Deal

16. Fairness Opinions

17. M&A and Financial Reporting

18. Intangible Asset Valuation

19. Measuring and Managing Value in High-Tech Start-ups

20. Cross-Border M&A

V. Case Studies

21. Merger and Acquisition Valuation Case Study – Distribution Company

22. Merger and Acquisition Valuation Case Study – Professional Services Firm

About the Authors