Edward Nelling - Business Valuation Demystified

Business Valuation
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Edward Nelling

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

ISBN: 978-0-07-175948-9

MHID: 0-07-175948-4

The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-170274-4, MHID: 0-07-170274-1.

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This book is dedicated to my mother, Lorraine Nelling, who taught me the value of the most important things in life.

Edward Nelling, Ph.D., CFA, is Professor of Finance and a Fellow in the Center for Corporate Governance in the LeBow College of Business at Drexel University, where he teaches courses in investment analysis and financial management. He has served as a consultant on mutual fund and exchange-traded fund performance, and as an expert witness. He holds the Chartered Financial Analyst designation from the CFA Institute, and is a member of the CFA Society of Philadelphia. He has also taught at the Wharton School, the Georgia Institute of Technology, and Korea University.

Congratulations on your decision to learn about the world of business valuation! Studying this topic and learning it well can be very rewarding, both intellectually and financially. This book is designed primarily for undergraduate or graduate students interested in learning about valuation. This is a natural topic for many students in business, but students in many other fields should understand the basics of valuation. However, my goal was to make the material accessible for a general audienceall the way from an old school proprietor who has worked his whole life to build his business, to someone serving on the board of directors of a public company. Midlevel managers and rank-and-file employees all need to know how their company is valued and how their actions and decisions can enhance this value.