Abrams J.B. Quantitative Business Valuation: A Mathematical Approach for Today's Professionals

Wiley, 2010. – 667 p. – 2nd ed. – ISBN: 0470390166, 9780470390160This is an advanced book in the science and art of valuing privately held businesses. In order to read this book, you must already have read at least one introductory book such as Valuing a Business (Pratt, Reilly, and Schweihs, 1996 and subsequent). Without such a background, you will be lost.
I have written this book with the professional business appraiser as my primary intended audience, though I think this book is also appropriate for attorneys who are very experienced in valuation matters, investment bankers, venture capitalists, financial analysts, and MBA students.
Throughout this book, I generally write to you, the reader, as if you are sitting next to me and we are conversing. I am writing to you as my colleague with whom I share my thinking process. I prefer a conversational tone to a more formal one.List of Tables and Figures.Forecasting Cash Flow.
Cash Flow: A Mathematical Derivation.
Forecasting Cash Flow: Mathematics of the Payout Ratio.
Using Regression Analysis.
Calculating Discount Rates.
Discount Rates as a Function of Log Size.
An Iterative Valuation Approach.
Adjusting for Control and Marketability.
Adjusting for Levels of Control and Marketability.
Putting it all Together.
Empirical Testing of Abrams’s Valuation Theory.
Measuring Valuation Uncertainty and Error.
Litigation.
Demonstrating Expert Bias.
Lost Inventory and Lost Profits Damage Formulas in Litigation.
Valuing ESOPs and Buyouts of Partners and Shareholders.
ESOPs: Measuring and Apportioning Dilution.
The Trade-off in Selling to an ESOP versus an Outside Buyer.
Buyouts of Partners and Shareholders.
Probabilistic Methods.
Valuing Start-Ups.
Monte Carlo Risk Simulation, by Dr. Johnathan Mun.
Real Options, by Dr. Johnathan Mun.About the Author.