Wiley Valuing Businesses Using Regression Analysis: A Quantitative Approach to the Guideline Company Transaction Method

Demystifies regression-based valuation through simple explanations, easy-to-understand charts, and time-saving bonus resources 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, this book will show you how to enable Excel's regression in your computer. Then you'll learn four different Regression tools that can be used for business valuations or for forecasting in general. As an added perk, this book also comes with a template that simplifies the entire regression methodology into the click of one button. With a minimal amount of work, you can use this template to produce a compelling four-page valuation report. See why current valuation methodologies can be wildly inaccurate and why regression analysis is a practical and preferable alternative Learn how to set up Regression in Excel and use single-variable linear regression to predict revenue and cash flow multipliers Walk through the process for conducting more advanced analyses, including curved regression with outliers and multiple variable regression Use the bonus template to create attractive four-page valuation reports using regression analysis in Excel This book is an excellent choice for valuators and other financial professionals ready to take the leap into regression analysis for more accurate, more objective business valuations. From the Inside Flap Business valuation methodologies using median, quartiles, or standard deviations to calculate revenue multipliers and cash flow multipliers often produce wildly divergent values. This forces the appraiser to choose between exceedingly high and extremely low values, or to average the values, which calls their valuation into question. And while regression analysis promises a solution to this problem, many analysts shy away from using it for fear that it’s too complex or confusing. In Valuing Businesses Using Regression Analysis, expert business valuator and author Fred Hall delivers a thorough and easy-to-follow discussion that breaks down regression analysis into its simplest terms and offers readable charts, graphs, and explanations that can be understood by everyone. Even those without a background in mathematics will appreciate Hall’s common-sense and accessible templates, tools, and examples. You’ll find step-by-step instructions for how to enable regression analysis in your version of Microsoft Excel. You’ll also discover four simple regression tools you can use for business valuation and forecasting. You’ll benefit from a custom, downloadable template that simplifies the entire regression methodology into the click of a single button that produces a compelling four-page valuation report. The book discusses why regression analysis should be your preferred tool for business valuation and why other valuation methodologies can be wildly inaccurate. Finally, the author walks you through the processes for more advanced analyses, including curved regressions with outliers and multiple variable regression. Perfect for business valuators, certified public accountants, certified financial analysts, and other professionals regularly engaged in the valuation of enterprises of various sizes, Valuing Businesses Using Regression Analysis is a one-stop