Business Valuation Adjustments AGN ORTH AMERICA企业估值调整 AGN北美国.ppt

Sources to Consider - cont. IRS Corporate Ratios Sources to Consider - cont. Corporation Source Book /taxstats/article/0,,id=167138,00.html#health Sources to Consider - cont. Corporation Source Book /taxstats/article/0,,id=167138,00.html#health Sources to Consider - cont. First Research Requires username and password Costly (~$3,500 per year) Sources to Consider - cont. First Research Dunn Bradstreet Subsidiary Source of data = www.fintel.us/firstresearch Our data is drawn from the Kauffman Financial Statement Database as well as from other sources that we can not reveal in accordance with our license agreements. Back to our Case Study – Hem/Onc Working capital adjustment applied Case Study – cont. Calculation of Non-Operating Excess Assets Adjustment #5 – WACC According to Jim Hitchner: “When valuing a minority interest, it is often appropriate to use the actual capital structure of the enterprise for the weighting of the WACC components because a minority owner is not able to bring about any changes in the company’s capital structure.”1 According to Shannon Pratt, Robert Reilly, Robert Schweihs: “If the company is to be valued as it is (under the strict fair market value standard, assuming the capital structure will remain intact), then the amount of debt in the company’s actual capital structure should be used. Certainly, if a minority ownership interest is to be valued… the company’s actual amount of debt in its capital structure would seem appropriate.”2 1 Financial Valuation: Applications and Models, p158. 2 Valuing a Business: The Analysis and Appraisal of Closely Held Companies, pp. 185 Factors to Consider Control vs. minority interest Actual vs. industry capital structure Cost of debt (actual vs. industry) Definition of debt Line of credit Notes payable Current portion of LTD Interest bearing? Sources to Consider for Benchmarking Risk Management Association