Valuing businesses using regression analysis : a quantitative approach to the guideline company transaction method / C. Fred Hall, III.

By: Hall, C. Fred [author.]
Language: English Publisher: Hoboken, New Jersey : Wiley, 2021Edition: First EditionDescription: 1 online resourceContent type: text Media type: computer Carrier type: online resourceISBN: 9781119793427; 9781119797432; 9781119793434; 9781119793441Subject(s): Business enterprises -- Valuation -- Mathematical models | Regression analysis | Quantitative researchGenre/Form: Electronic books.DDC classification: 658.15 LOC classification: HG4028.V3Online resources: Full text available at Wiley Online Library Click here to view
Contents:
TABLE OF CONTENTS Foreword Preface i CHAPTER 1: Current Methodologies 1 CHAPTER 2: The Solution 15 CHAPTER 3: Identifying Outliers Using Re-gression 26 CHAPTER 4: Cash Flow Multiplier Regression 31 CHAPTER 5: Enterprise Multiplier 41 CHAPTER 6: Polynomial Regressions 45 CHAPTER 7: Multiple Variable Regression 50 CHAPTER 8: Selection of Transactions in the Sample 62 CHAPTER 9: Regression 2.0 92 CHAPTER 10: Using Excel’s Regression Utility 107 CHAPTER 11: Excel Valuation Template 125 CHAPTER 12: Conclusion Acknowledgments 142
Summary: "Regression theory, while the most accurate and appropriate method for business valuation, is often avoided by appraisers out of fear that its complex mathematical model won't be understood by judges and juries. Instead, they opt for the easy sell, using median and quartiles to value a business despite their unreliable results. Businesses Using Regression Analysis solves this issue by teaching analysts how to simplify the method into straightforward and undeniable valuations Current methodologies using median, quartiles, or standard deviations to calculate Revenue Multipliers and Cash Flow multipliers often produce values that are wildly divergent. This forces the appraiser to choose between a very high or a very low value or consider averaging the values, opening the possibility for the appraiser to be challenged. On the surface, regression analysis appears to be the more complex, mathematical model, so many professionals shy away from using it out of fear that readers will be confused and reject the results of the appraisal. Valuing Businesses Using Regression Analysis solves this issue by breaking down regression to its simplest terms and providing easy-to-read charts and explanations that can be understood by all. Since regression analysis does not come pre-installed in Excel, the reader will be shown how to enable Excel's regression in their computers. The reader will then be shown four different Regression tools that can be used for business valuations or for forecasting in general. As an added perk, this book will also come with a template that simplifies the entire regression methodology into the click of one button. With minimal amount of work, the template will produce a compelling four-page valuation report"-- Provided by publisher.
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Includes index.

ABOUT THE AUTHOR
FRED HALL is CEO and owner of Amador Appraisals and Acquisitions. He has eighteen years of experience in writing business valuations and has appraised over 800 companies. He is a sought-after lecturer and speaker on business valuation techniques at national conferences. His research has been published in IBA’s quarterly journal, Business Appraisal Practice, Business Valuation Resource’s quarterly, Thomson-Reuter’s Valuation Strategies, NACVA’s The Value Examiner, and others.

TABLE OF CONTENTS
Foreword

Preface i

CHAPTER 1: Current Methodologies 1

CHAPTER 2: The Solution 15

CHAPTER 3: Identifying Outliers Using Re-gression 26

CHAPTER 4: Cash Flow Multiplier Regression 31

CHAPTER 5: Enterprise Multiplier 41

CHAPTER 6: Polynomial Regressions 45

CHAPTER 7: Multiple Variable Regression 50

CHAPTER 8: Selection of Transactions in the Sample 62

CHAPTER 9: Regression 2.0 92

CHAPTER 10: Using Excel’s Regression Utility 107

CHAPTER 11: Excel Valuation Template 125

CHAPTER 12: Conclusion

Acknowledgments 142

"Regression theory, while the most accurate and appropriate method for business valuation, is often avoided by appraisers out of fear that its complex mathematical model won't be understood by judges and juries. Instead, they opt for the easy sell, using median and quartiles to value a business despite their unreliable results. Businesses Using Regression Analysis solves this issue by teaching analysts how to simplify the method into straightforward and undeniable valuations Current methodologies using median, quartiles, or standard deviations to calculate Revenue Multipliers and Cash Flow multipliers often produce values that are wildly divergent. This forces the appraiser to choose between a very high or a very low value or consider averaging the values, opening the possibility for the appraiser to be challenged. On the surface, regression analysis appears to be the more complex, mathematical model, so many professionals shy away from using it out of fear that readers will be confused and reject the results of the appraisal. Valuing Businesses Using Regression Analysis solves this issue by breaking down regression to its simplest terms and providing easy-to-read charts and explanations that can be understood by all. Since regression analysis does not come pre-installed in Excel, the reader will be shown how to enable Excel's regression in their computers. The reader will then be shown four different Regression tools that can be used for business valuations or for forecasting in general. As an added perk, this book will also come with a template that simplifies the entire regression methodology into the click of one button. With minimal amount of work, the template will produce a compelling four-page valuation report"-- Provided by publisher.

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