Principles of Private Firm Valuation

Principles of Private Firm ValuationThe past forty years has produced significant theoretical and empirical research on the ways in which the capital markets value the equity shares of publicly traded firms. This research supported the rapid development of the analytical frameworks approach to the valuation of public equity shares. Stanley Feldman, in Principles of Private Firm Valuation, makes a major contribution in furthering this analytical frameworks approach to the valuation of privately held equity shares.-Timothy G. Sullivan, Professor of Finance, Bentley College, Waltham, MassachusettsPrinciples of Private Firm Valuation offers CFOs of private firms critical insights into the factors that determine private firm value. The managing for value model is particularly useful because it creates a framework to measure the value created by undertaking various business strategies including acquisitions and divestitures. Overall, Principles offers a superlative guide must-read to the numerous and complex valuation issues that owners and managers of private firms face. It is a must read for those interested in how the value of private firms is determined.-Frank Fiumara, VP & CFO, Curtis Instruments, Inc.CFOs of public firms are intimately involved in valuation issues related to acquisitions and divestitures. As private firms are targeted for acquisitions, CFOs of private firms will be increasingly relied upon to offer advice and guidance to owners. For finance professionals that desire to raise their level of preparedness for the valuation questions that will certainly come, Principles of Private Firm Valuation offers an excellent start. Principles clearly addresses a number of complex private firm valuation issues including determining the cost of capital, and the importance of transparency and liquidity to establishing the value of a private firm. For those interested in private firm valuation, I highly recommend Principles.-Mark Beucler, Vice President, Finance, Chief Financial Officer and Treasurer, Lifeline Systems