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Download How to Price a Profitable Company epub

by Paul B. Baron

Are you thinking of buying a company, but are unsure about its true worth? Are you considering selling your company, but fear you may sell yourself short? Or do you need a solid valuation for any number of good reasons, ranging from insurance problems to divorce problems?This book provides expert strategies for setting the sale or purchase price of a profitable, closely held company in today's volatile marketplace. With seasoned business broker Paul Baron as your guide, you will learn everything you need to know about pricing, including techniques used by 23 of the most successful buyers in America; pros and cons of leveraged buyout pricing strategies; reasons some companies do not sell; traditional or IRS methods of pricing a business - and why you should avoid them; the different types of buyers and sellers; many formulas for pricing businesses as diverse as pizzerias and insurance firms; add-back adjustments and how they work; discounted cash flow techniques and how they work; the seven kinds of prices, and how to determine which are most important to you; and much more, explained clearly and with useful examples.
Download How to Price a Profitable Company epub
ISBN: 0814479103
ISBN13: 978-0814479100
Category: Business
Subcategory: Finance
Author: Paul B. Baron
Language: English
Publisher: AMACOM; 2nd edition (August 28, 1996)
Pages: 208 pages
ePUB size: 1918 kb
FB2 size: 1885 kb
Rating: 4.7
Votes: 738
Other Formats: azw lit lrf mbr

The book spends most of the text explaining unacceptable methods of valuing a company. The author says that all of these methods are not applicable for companies under $30M in sales. I disagree! Using Discounted Cash Flow methods to place a value on a company is widely accepted compared to "rule of thumb" approaches.
His explanation of the DCF and other NPV methods is also flawed. He ignores the cash flow impact of debt, capital expenditures and working capital changes!
His book is only good for a small business owner with sales probably under $3M to $5M.
I found it to be sometimes incomplete and sometimes very confusing (especially unacceptable methods of pricing)...