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Index

A
Accounts receivable 214
Alliance of Merger and Acquisition Advisors 197, 200
American Bar Association 28
American Institute of Certifi ed Public Accountants 13, 26, 94, 129, 150, 185, 186, 191, 197
American Society of Appraisers 9, 26, 94, 129, 134, 148, 150, 185, 186, 191, 197
Appraisal Standards Board 134, 188
Arbitration 144, 146
ASA Business Valuation Committee 26
Asset approach 38, 207, 209
Association for Investment Management and Research 148, 186
Audit 188
B
Bankruptcy 87, 129, 222
Beta 61
Breach of fi duciary duties 172, 180
Burden of proof 169, 172
Business appraisal profession 40
Business enterprise goodwill 200, 224
Business valuation 146, 207, 209, 226
Buy-sell agreement 144, 222
BV in the legal community 20
BV standards 13, 16
C
Canadian Institute of Chartered Business Valuators 26, 129, 134, 191
Capital asset pricing model 61, 185
Capitalization of cash fl ows 63
Capitalization rate 216
Capitalized excess earnings method 207, 209
Cash-out merger 172
C corporation 118, 197
Center for Research in Security Prices 65
Charitable contributions 129
Coeffi cient of variation 65, 219
Company specifi c risk premium 197
Conglomerate 54
Control 85, 216
Controlling interest 85
Control premium 47, 51, 54
Control value 214
Cost of capital 59, 63, 75, 77, 180, 188
Cost of equity 69, 77
Cross-examination 140, 142, 152, 154
D
Daubert 134, 197
Deal size 54, 75
Deposition 140, 142, 154
Disclaimer 42
Discounted cash fl ow method 31, 169, 180
Discount for lack of marketability 34, 89, 102, 104, 107, 109, 112, 115, 118, 164, 197
Discount rate 65, 69, 72, 77, 118, 216
Discovery 138, 140, 152
Discretionary cash fl ow 28
Discretionary earnings 38, 214
Dispersion 219
Dispute resolution 159
Dissenting stockholder 180
Due diligence 172
E
Earnings before interest, taxes 54
Earnings Before Interest, Taxes, Depreciation,
Amortization 54, 75
Earnings multiple 221
Earnings per share 63
Economic value added 63
Emory Pre-IPO Studies 89, 102, 104
Employment agreement 222
Enterprise goodwill 200, 224
Entire fairness 166, 172, 180
Equitable distribution 124, 179
Equity risk premium 59, 63, 77, 197, 200, 216
Estate planning 123
Estate tax 40, 164
Estimate 44
Evidence 162
Excess earnings method 207, 209
Executive compensation 224
Expert testimony 9, 18
F
Fair dealing 180
Fair market value 38, 94, 174, 176, 205, 207, 222
Fairness opinion 24, 40, 172
Fair price 180
Fair value 169, 176, 180, 193
Fama French three factor model 61
Family limited partnership 40, 124, 200
Financial ratios 221
FMV Restricted Stock Study™, The 34, 97, 104, 200
G
Gallo 34
Gift tax 40
Goodwill 200, 224
Gross margin 38
Guideline companies 164
Guideline merged and acquired company method 226
Guideline multiple 221
H
Holding period 89, 104
I
Ibbotson Associates 61, 72, 77, 188
Income approach 72, 188, 216
Independence 40, 42
Indication 33
Infl ation 72
Initial public offering 4, 81, 112, 115
Institute of Business Appraisers 26, 129, 134, 186, 191
Intangibles 40
Intellectual property 40
Internal Revenue Service 94, 97, 102, 188, 205, 222
International Business Brokers Association 214
Inventory 214
Invested capital 214, 216
Investment value 176, 209
J
Jelke 118
K
Kumho Tire 134, 188
L
Lack of control 118
Levels of value 34, 85, 200
Leveraged buyout 74
Limited liability company 40
Liquidation value 164
M
Malpractice arbitration 176
Management interviews 140
Mandelbaum factors 118
Marital dissolution 174, 179
Marketable minority interest 85
Market approach 38, 191, 216, 222, 226
Market multiples 74, 221
Market value of invested capital 200
McCord 107, 197
Mergerstat®/Shannon Pratt's Control Premium
Study™ 72, 193, 226
Minority interest 85
Minority oppression 87
Mutual fund 212
N
National Association of Certifi ed Valuation Analysts 26, 129, 134, 186, 191
Neglect 42
Net asset value 123, 207, 209
Net cash fl ow 63, 216
Net income 54
Non-compete 222
Nonoperating assets 214
O
Okerlund 34
Opinion 33, 44
P
Partnership interest 124, 164
Personal goodwill 200, 224
Personal property 134, 188
Practice goodwill 224
Pratt's Stats™ 28, 54, 75, 185, 188, 193, 200, 214, 219, 222, 226
Pre-IPO studies 89, 91, 94, 109
Pricing multiples 221
Prior transactions 164
Private companies 212
Private company transaction 226
Private stock 34
Professional goodwill 200, 224
Public companies 212
Public guideline market method 226
Q
Qualifi ed independent appraiser 144, 146
Quantitative marketability discount model 89, 94
R
Range of evidence 162
Rate of return 185
Reasonable compensation 224
Restricted stock 34, 112
Restricted stock studies 85, 87, 91, 102, 109
Risk premium 197
Rules of thumb 28
S
S corporation 197, 200
Securities and Exchange Commission 94
SIC code 54, 91
Size effect 69, 74
Small stock premium 65, 69, 72
Standard deviation 219
Standard of value 144, 152, 176, 197
Subsequent events 31
Sum betas 61
Systematic risk 61
T
Tax affecting 197, 200
Terminal value 63, 216
The Appraisal Foundation 134, 166, 193
Transaction multiples 221
Trapped-in capital gains 118, 179, 188, 205
U
Uniform Standards of Professional Appraisal
Practice 13, 16, 26, 33, 134, 150, 188
Unrealized capital gains 205
V
Valuation Advisors' Lack of Marketability Discount
Study™ 104
Valuation conclusion 33
Valuation multiples 54, 75, 193, 216, 221, 226
Valuation ratios 221
Valuation report 22
Value drivers 26
Voting stock 188
W
Willamette Management Associates Study 89, 102