Shannon P. Pratt

Expert direction on interpretation and application of standards of value Written by Jay Fishman, Shannon Pratt, and William Morrison—three renowned valuation practitioners—Standards of Value, Second Edition discusses the interaction between valuation theory and its judicial and regulatory application. This insightful book addresses standards of value (SOV) as applied in four distinct contexts: estate and gift taxation; shareholder dissent and oppression; divorce; and financial reporting. Here, you will discover some of the intricacies of performing services in these venues. Features new case law in topics including personal good will and estate and gift tax, and updated to cover the new standards issued since the first editionIncludes an updated compendium discussing the standards of value by state, new case law covering divorce, personal goodwill, and estate and gift tax, and coverage of newly issues financial standardsShows how the Standard of Value sets the appraisal process in motion and includes the combination of a review of court cases with the valuator's perspectiveAddresses the codification of GAAP and updates SOV in individual states Get Standards of Value, Second Edition and discover the underlying intricacies involved in determining "value."

A one-stop shop for background and current thinking on the development and uses of rates of return on capital Completely revised for this highly anticipated fifth edition, Cost of Capital contains expanded materials on estimating the basic building blocks of the cost of equity capital, the risk-free rate, and equity risk premium. There is also discussion of the volatility created by the financial crisis in 2008, the subsequent recession and uncertain recovery, and how those events have fundamentally changed how we need to interpret the inputs to the models we use to develop these estimates. The book includes new case studies providing comprehensive discussion of cost of capital estimates for valuing a business and damages calculations for small and medium-sized businesses, cross-referenced to the chapters covering the theory and data. Addresses equity risk premium and the risk-free rate, including the impact of Federal Reserve actionsExplores how to use Morningstar's Ibbotson and Duff Phelps Risk Premium Report dataDiscusses the global cost of capital estimation, including a new size study of European countries Cost of Capital, Fifth Edition puts an emphasis on practical application. To that end, this updated edition provides readers with exclusive access to a companion website filled with supplementary materials, allowing you to continue to learn in a hands-on fashion long after closing the book.

The impact of illiquidity examined in unprecedented depth and scope Cost of Illiquidity provides a uniquely comprehensive assessment of the impact of illiquidity on a company's value. While much has been written about the concept, the totality of illiquidity's impact has never been addressed in a practical manner until now. This book delves into the true cost of illiquidity in capital markets, and identifies quantifiable measures for assessment of value and risk. Illiquidity discount calculations are explained step-by-step and examined in relation to discounts for lack of control and lack of marketability, and the relationship between liquidity, cost of capital, and equity risk premium is reviewed in detail. An historical liquidity profile of the U. S. Stock Market surveys the value impact, while issues specific to markets from the European Union to developing countries are examined and addressed. With an emphasis on practical application, this book also includes data resources, a statistical analysis review, definitions, measurements, costs, and more to help you apply illiquidity calculations in real-world valuations. The cost of illiquidity is a critical element in investing and trading in capital markets, and it involves a number of controversial issues. This book addresses these issues and provides practical knowledge for finance professionals seeking a more comprehensive assessment of a company's value. * Quantify illiquidity as part of a business valuation * Address illiquidity as a major factor is risk assessment * Estimate the impact of illiquidity on stock value * Apply illiquidity issues to markets around the globe Illiquidity is a significantly greater factor in stock value and business and asset valuations than previously thought, and its role in contemporary Wall Street and banking issues makes it an area of critical concern. Cost of Illiquidity is an invaluable resource with timely solutions for any finance professional.

Business Valuation Discounts and Premiums SECOND EDITION Discounts and premiums do not just affect the value of a company; they play a crucial role in influencing a host of other factors and conditions that can make or break a deal. When it comes to business valuations, it's the business appraiser's responsibility to be intimately knowledgeable with every aspect of discounts and premiums: the different types, the situations when they may or may not apply, and how to quantify them. In this newly updated edition of Business Valuation: Discounts and Premiums, Shannon Pratt?one of the nation's most recognized and respected business valuation consultants?brings together the latest collective wisdom and knowledge about all major business discounts and premiums. Addressing the three basic approaches to conducting a valuation?the income approach, the market approach, and the asset approach? Shannon Pratt deftly and logically details the different discounts or premiums that may be applicable, depending on the basic valuation approach used, and how the valuation approaches used affect the level. Clearly written and thorough, Business Valuation: Discounts and Premiums, Second Edition provides business appraisers, accountants, attorneys, and business owners with an arsenal of information for their professional toolkit that can be applied to every major evaluation case they might face in any deal. This updated edition features timely, comprehensive coverage on: Strategic acquisitionsExtensive empirical dataPre-IPO marketability discount studiesMerger and acquisition negotiations, empirical evidence from completed transactions, and positions taken by courts in litigationsStrategic acquisition premiumsStudies on minority discounts Detailed, authoritative, and complete in its coverage, Business Valuation: Discounts and Premiums, Second Edition gets to the core of one of the more complex challenges faced by business appraisers, and arms readers with the understanding and techniques needed to successfully meet and exceed their job expectations.

While the number of companies has declined, the quantity and quality of detailed information available for the transaction method has increased dramatically. This book offers comprehensive direction on the powerful method within the market approach. It includes updated and new data sources. In the new edition, court cases regarding the market approach are presented and analyzed. The workbook to accompany The Market Approach to Valuing Businesses, Second Edition consists of questions and exercises, presented in the same order as the chapters in the book

Put the principles of the market approach to valuing businesses to work! This is an indispensable, hands-on workbook to help valuation experts (and those who want to be) better understand the application of methods used in the increasingly prevalent market approach to valuing businesses. With convincing evidence of value for both buyers and sellers, the market approach can end stalemates and get deals closed. Acclaimed for its empirical basis and objectivity, it's the model most favored by the IRS and the United States Tax Court--as long as it's properly implemented. A companion to the definitive book on the topic, The Market Approach to Valuing Businesses, Second Edition, this workbook includes questions and exercises that bring the concepts to life. It parallels the book and helps readers understand the methodologies. It also provides practical experience in applying the relevant theories and formulas. Perfect for CPAs, appraisers, corporate development officers, intermediaries such as brokers and investment bankers, venture capitalists, and consultants, this workbook can also be the basis for dynamic in-house training programs.

Your Best Approach to Determining Value If you're buying, selling, or valuing a business, how can you determine its true value? By basing it on present market conditions and sales of similar businesses. The market approach is the premier way to determine the value of a business or partnership. With convincing evidence of value for both buyers and sellers, it can end stalemates and get deals closed. Acclaimed for its empirical basis and objectivity, this approach is the model most favored by the IRS and the United States Tax Court-as long as it's properly implemented. Shannon Pratt's The Market Approach to Valuing Businesses, Second Edition provides a wealth of proven guidelines and resources for effective market approach implementation. You'll find information on valuing and its applications, case studies on small and midsize businesses, and a detailed analysis of the latest market approach developments, as well as: A critique of US acquisitions over the last twenty-five yearsAn analysis of the effect of size on valueCommon errors in applying the market approachCourt reactions to the market approach and information to help you avoid being blindsided by a litigation opponent Must reading for anyone who owns or holds a partial interest in a small or large business or a professional practice, as well as for CPAs consulting on valuations, appraisers, corporate development officers, intermediaries, and venture capitalists, The Market Approach to Valuing Businesses will show you how to successfully reach a fair agreement-one that will satisfy both buyers and sellers and stand up to scrutiny by courts and the IRS.

Sample exam questions and updated information on the latest developments in the field for valuation candidates and professionals The Business Valuation Body of Knowledge Workbook, Second Edition provides both a study guide for candidates preparing for ABV, ASA, CBA, or CVA certification and a training tool for practitioners conducting business valuations. To be used in conjunction with an in-house training program or simply for independent study and reference, the Workbook: *Includes questions and exercises that typically appear on accreditation exams *Covers the most frequently encountered errors on reports and in examinations *Reflects the latest business valuation developments, viewpoints, court case references, and data resources *Contains hundreds of multiple-choice and true/false questions, short problems, and fill-in-the-blank questions *Includes eight hours of CPE credit through a self-study examination A companion to Shannon Pratt’s Business Valuation Body of Knowledge, Second Edition or a stand-alone resource, the Business Valuation Body of Knowledge Workbook, Second Edition keeps ABV, ASA, CBA, and CVA candidates and current practitioners up to speed on the latest developments in this constantly changing discipline.