An Insider’s Guide to Business Valuation

Since I spend most of my time in the mid market, one of the questions that continues to creep into my conversations with founders, CEO’s, CFO’s, Board Members and senior executives relates to the value of a particular company.  Maybe they are concerned with the value of their own company, one they compete with, one they would like to buy or sell or merge with or divest or recapitalize!  There are a wide-range of possible discussions depending on the stakeholder’s perspective and motivations.

I wrote a book in 2009 on “Building Business Value” which deals with business value primarily from the operators or leaders point of view, but I’ve recently read a concise handbook on Business Valuation that should be in the library of every CEO, CFO and Board Member.

Andrew Smith, a Principal and Senior Managing Director of the McLean Group, recently published “An Insider’s Guide to Business Valuation, A Handbook for Board Members and Executives” and I believe it is a must read for all senior executives.  Andy spells out the basics of business valuation in about 50 pages so even the busiest CEO can pour through this soft cover book during a short flight.  CFO’s and Board Members will benefit greatly from Andy’s knowledge and clear presentation of the many facets of valuation.

There is an old saying that “when the man with experience meets the man with money, the man with the money ends up with the experience, and the man with the experience ends up with the money.”  Senior executives that take the time to read “An Insider’s Guide to Business Valuation” will close the money-experience gap and will put their company in a more favorable valuation position.

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