The Valuation of Businesses and Shares (2nd Edition)

Written by Des Peelo, one of Ireland’s leading valuation experts, The Valuation of Buisnesses and Shares: A Practitioner's Guide is a practical handbook setting out guidelines, case histories, examples of valuations and best practice for the busy practitioner in advising on valuations that may arise in many different circumstances. This 2nd edition is updated and expanded to be of maximum benefit to the busy practitioner.

Valuation permeates all aspects of business life. It is the measure of capital value on stock markets around the world, the mainspring of wealth and its creation, and the store of value for the economic well-being of a country.

This is a highly practical handbook from one of Ireland’s leading valuation experts, setting out guidelines, case histories, examples of valuations and best practice for the busy practitioner in advising on valuations that may arise in many different circumstances. Integrity, meaning objectivity, independence and impartiality, is the hallmark of the professional valuer. This book explains these obligations and what they mean in everyday valuation practice.

Updated for changes in relevant guidance and law, this 2nd edition includes a whole new chapter on selling and buying a business, as well as extensive developments of the chapters on the valuation of a professional practice and the importance of shareholders and partnership agreements, with a specimen partnership agreement provided in an appendix. Importantly, the author has adapted the advice he offers according to relatively recent changes in the market place, to why businesses are formed and therefore how they are valued.

Contents

1. Valuation and the Market
2. The Role and Responsibilities of the Valuer
3. The Fundamentals of Valuation
4. The Letter of Engagement
5. Future Maintainable Profits
6. The Multiple
7. The Minority Position
8. The Role of Assets
9. Grievance is not a Method of Valuation
10. Fair Value, Market Value and Willing Buyer/Willing Seller
11. A Shareholders' Agreement
12. A Quasi-partnership
13. The Special Purchaser
14. Valuing a Small Business
15. Other Methods and Circumstances of Valuation
16. Selling and Buying a Business
17. The Valuation of a Professional Practice

• Appendix One – Specimen Partnership Agreement
• Appendix Two – Partnership Act 1890
• Appendix Three – Example of a Letter of Confirmation from Directors
• Appendix Four – Examples of Letters of Engagement
• Appendix Five – Examples of Valuation Reports
• Appendix Six – Revenue Guidelines on Share Valuation

For further information, contact publishing@charteredaccountants.ie or telephone on (+353) 01 637 7204

The Author

The career of Des Peelo FCA, AITI, MCIARB has been in merchant banking, professional practice and as a non-executive director of numerous companies. A lecturer for Chartered Accountants Ireland for nearly 20 years on the topic of financial management, Des has specialised in business and share valuation throughout his career. An experienced practitioner, he has carried out a large number of valuations, including for a wide range of mediations, arbitrations, tax matters and court cases. He has also been a financial journalist and commentator in the national media.