Valuation for M&A: Building Value in Private Companies

"Mellen and Evans have really `nailed it` with their comprehensive but fluid, easy-to-read book on corporate valuations. No business owner, senior manager, or M&A advisor should be without this document, which focuses on value creation, company risks, competitive analysis, synergies, adjustments, etc, particularly as it pertains to exit planning. A great achievement!"---Russell Robb, former president, Association for Corporate Growth

"Valuation for M&A is a wonderfully practical and thoughtful analysis of how to analyze the elements of value in the buying and selling of private middle-market companies. The authors allow readers to target those aspects of valuation that matter to them most, quickly and easily. This book is a great reference for sellers, investors, financing sources, professionals, and students of the subject involved in private M&A".---Peter Blasier, Partner, Reed Smith LLP

"In this second edition of Valuation for M&A, Mellen and Evans respond to the impact that changing financial reporting standards, intangible assets, and globalization have had on M&A by adding an easy-to-understand, broad overview, of these complex topics. The reader, for example, will gain a better understanding of the application of the valuation process to intangible assets, the companies that own them, and how valuation and accounting interact."---James B. Lurie, Principal, Cap Val, LLC

"We have subscribed to the approach to valuation presented to us by the authors for years. Specifically, their approach enables us to focus both on driving our own value and understanding the value and understanding the value (or lack of it) in M&A opportunities. Given the market opportunities of the past several years and those that most certainly lie ahead, we believe the disciplined approach they describe in this book is critical. In our privately held company, we are making these decisions with our own money, not someone else`s, so we have to understand value."---Kevin McCarter, Chief Executive Officer, PetroLiance LLC

"Provides an excellent road map for the M&A process and focuses on the elements critical to building value in private businesses. Don`t enter into a negotiation without reading this!"---Z. Christopher Mercer, Chief Executive Officer, Mercer Capital Management, Inc.

Most owners and managers operate their businesses year after year without ever knowing what their company is worth, how much more a strategic buyer would pay to acquire it, what factors affect the company`s stock value, whether they would be better off selling, and if so, how and when?

Having provided valuation advisory services to thousands of companies and corporate executives, authors and valuation experts Chris Mellen and Frank Evans have developed proven techniques for accurately measuring and successfully building value in your company. Now in a second edition, Valuation for M&`A: Building Value in Private Companies provides you with the tools to determine what your company`s value is, what drives that value, and how to enhance that value during an M&A transaction and in daily operations---even when no stock price exists.

Now covering fair value accounting and the impact of SFAS Nos. 141 and 157, as well as private capital markets, exitplanning, cross-border M&As, and venture-backed/early stage companies, this clear and concise new edition is written for business appraisers, CPAs, investment bankers, venture capitalists, and consultants, as well as for investors and managers of closely held entities.

Complete with a comprehensive case study to illustrate concepts and calculations, Valuation for M&A, Second Edition fills a gap that has long stymied both sides of the M&A equation, handing owners, managers, and strategic buyers the first effective methodology for measuring and building the value of a private company and ensuring that everyone gains the maximum benefit from the deals they make.

The only book to focus on valuation specifically for mergers and acquisitions, Valuation for M&A, Second Edition lays out the steps for measuring and managing value creation in nonpublicly traded entities, and helps investors, executives, and their advisors maximize return on investment and determine the optimum strategy to enhance both market value and strategic value. It provides you with a detailed guide to prepare for the sale and acquisition of your firm, spelling out how to identify, quantify, and qualify the synergies that increase its value to strategic buyers.

Chris M. Mellen, Asa, Mcba, Cm&Aa, is president and founder of Delphi Valuation Advisors, Inc. (www.delphivaluation.com), located in Boston, Massachusetts and a principal in American Business Appraisers®. He is an Accredited Senior Appraiser (ASA), Master Certified Business Appraiser (MCBA), and Certified Merger & Acquisition Advisor (CM&AA). Chris also holds an MBA with a concentration in finance from Babson College and a bachelor of arts with a major in industrial relations and economics from McGill University. His experience includes completion of over 1,800 valuation assignments since 1989 in a wide range of industries for such purposes as strategic planning, mergers and acquisitions, tax and estate planning and compliance, financial reporting, financing, buy-sell agreements, litigation, and appraisal review. He can be contacted at cm@delphivaluation.com.
Frank C. Evans, ASA, CBA, is the founder of Evans and Associates Valuation Advisory Services (www.evansandassociates.net), in Pittsburgh, Pennsylvania, and a principal in American Business Appraisers®. He holds the Accredited Senior Appraiser (ASA) and Certified Business Appraiser (CBA) designations and held the Certified Public Accountant Accredited in Business Valuation (CPA/ABV) designation. With an MBA and a bachelor of arts degree in economics from the University of Pittsburgh, he performs valuations and related consultation for strategic planning, merger and acquisition, tax planning, shareholder agreements and disputes, and litigation support. He is the coauthor with David Bishop of the first edition of Valuation for M&A and can be reached at fevans@evansandassociates.net.