Financial Valuation Workbook.pdf

valuation

workbook

Step-by-Step Exercises

to Help You Master

Financial Valuation

JAMES R. HITCHNER

and

MICHAEL J. MARD

John Wiley & Sons, Inc.

Financial

To my mother and father, Earle and Virginia Hitchner, and my sister, Deborah

Hitchner, who left this world too early for me to get to know her.

To Pam, Seph, Joe and Shelley, Laura and Jacob, and my mom and dad, Geneva

and Joe Mard. And to Derick, we miss you.

This book is printed on acid-free paper:

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system or transmitted

in any form or by any means, electronic, mechanical, photocopying, recording, scanning or

otherwise, except as permitted under Section 107 or 108 of the 1976 United States

authorization through payment of the appropriate per-copy fee to the Copyright Clearance

Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-750-4744, or

on the web at www.copyright.com. Requests to the Publisher for permission should be

addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street,

Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, e-mail: permcoordinator@wiley.com.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their

best efforts in preparing this book, they make no representation or warranties with respect

to the accuracy or completeness of the contents of this book and speciﬁcally disclaim any

implied warranties of merchantability or ﬁtness for a particular purpose. No warranty may

be created or extended by sales representatives or written sales materials. The advice and

strategies contained herein may not be suitable for your situation. You should consult with

a professional where appropriate. Neither the publisher nor author shall be liable for any

loss of proﬁt or any other commercial damages, including but not limited to special,

incidental, consequential, or other damages.

For general information on our other products and services, or technical support, please

contact our Customer Care Department within the United States at 800-762-2974, outside

the United States at 317-572-3993 or fax 317-572-4002.

Wiley also publishes its books in a variety of electronic formats. Some contents that

appears in print may not be available in electronic books.

For more information about Wiley products, visit our web site at www.wiley.com.

ISBN 0-471-22083-3

Printed in the United States of America.

10987654321

about the authors

James R. Hitchner, CPA/ABV, ASA, The Financial Valuation Group, Financial

Consulting Group, L.C. James R. Hitchner is the managing director of The

Financial Valuation Group (FVG) in Atlanta, Georgia. FVG is a national ﬁnancial

advisory services ﬁrm specializing in valuation and litigation services and is a

founding member of the Financial Consulting Group, L.C. (FCG). FCG is a

national association of professional services ﬁrms dedicated to excellence in valua-

tion, ﬁnancial, and litigation consulting.

Mr. Hitchner has more than 24 years of professional experience, including 22

years in valuation services and two years in real estate development. He spent seven

years with Phillips Hitchner Group and was partner-in-charge of valuation services

for the Southern Region of Coopers & Lybrand (currently PricewaterhouseCoopers),

where he spent more than nine years. He was also employed as a senior appraiser

with the national appraisal ﬁrm American Appraisal Associates, in both the ﬁnan-

cial and industrial valuation groups.

He has been recognized as a qualiﬁed expert witness and has provided testi-

mony on valuations in Florida, Georgia, Indiana, New Jersey, North Carolina,

Ohio, Tennessee, and Virginia. In the valuation area he has co-authored 10 courses,

taught over 35 courses, published over 30 articles, and has made over 80 confer-

ence presentations.

Mr. Hitchner is co-author of Valuation for Financial Reporting: Intangible Assets,

Goodwill, and Impairment Analysis—SFAS 141 and 142 and editor/co-author of

Financial Valuation: Applications and Models, both published by John Wiley & Sons.

He is also co-author of the American Institute of Certiﬁed Public Accountants (AICPA)

three-part self-study videocourse series on SFAS 141 and 142 on business combina-

tions, intangible assets, and goodwill impairment.

He is an inductee in the AICPA Business Valuation Hall of Fame and current

member of the AICPA task force on Business Valuation Standards. Mr. Hitchner is

past chairman of the Business Valuation Committee of the Georgia Society of CPAs

and the ABV exam review course committee; past member of the AICPA Business

Valuation Subcommittee and the AICPA ABV exam committee; and contributing

editor of AICPA CPA Expert newsletter.

He has a Bachelor of Science degree in Engineering from the University of

Pittsburgh and a Masters of Business Administration degree from Rider University.

He holds the AICPA Accreditation in Business Valuation (ABV) specialty designation,

and is an Accredited Senior Appraiser (ASA) with the American Society of Appraisers.

iii

ABOUT THE AUTHORS

Michael J. Mard, CPA/ABV, ASA, The Financial Valuation Group, Financial

Consulting Group, L.C. Michael J. Mard is a managing director of The Financial

Valuation Group (FVG) in Tampa, Florida. FVG is a national ﬁnancial advisory ﬁrm

specializing in valuation and litigation services. Mr. Mard was founding president of

the Financial Consulting Group, a national association of professional service ﬁrms

dedicated to excellence in valuation, litigation, and ﬁnancial consulting.

Mr. Mard has been a full-time business appraiser and expert witness for over 19

years, specializing in intangible assets, speciﬁcally intellectual property. He has devel-

oped analyses that have been reviewed and accepted by the Securities and Exchange

Commission (SEC), numerous accounting ﬁrms (including the Big Five), the Internal

Revenue Service (IRS), and the courts. Mr. Mard has provided expert testimony in

both Federal and state courts related to intangible assets, intellectual property, busi-

ness damages, marital dissolution, shareholder disputes, and IRS matters.

Mr. Mard is lead co-author of Valuation for Financial Reporting: Intangible

Assets, Goodwill, and Impairment Analysis—SFAS 141 and 142 and co-author of

Financial Valuation: Applications and Models, both published by John Wiley & Sons.

He is co-author of the American Institute of Certiﬁed Public Accountants (AICPA)

three-part self-study video course series on SFAS 141 and 142 on business combina-

tions, intangible assets, and goodwill impairment. He also co-authored the AICPA

Consulting Services Practice Aid 99-2: Valuing Intellectual Property and Calculating

Infringement Damages. Mr. Mard has co-authored 20 courses and published over 60

articles. He has been a presenter, speaker, and instructor over 70 times.

Mr. Mard is very active at state and national levels with emphasis on business

valuation standards and intellectual property valuations. He has served on numer-

ous committees and task forces of the AICPA, Florida Institute of Certiﬁed Public

Accountants, American Society of Appraisers, and the Financial Accounting

Standards Board (FASB). Mr. Mard continues to serve on two FASB task forces:

Disclosure About Intangible Assets and Business Combination/Purchase Method

Procedures.

He has received the AICPA Business Valuation Volunteer of the Year Award

and been inducted into the AICPA Business Valuation Hall of Fame. He has been

published in the Marquis Who’s Who in Finance Industry and the International

Who’s Who of Professionals. He has a Bachelor of Science degree in Accounting

and a Masters of Accounting from the University of South Florida. He holds the

AICPA Accreditation in Business Valuation (ABV) specialty designation, and is an

Accredited Senior Appraiser (ASA) with the American Society of Appraisers.

Plik z chomika:

Inne pliki z tego folderu:

Inne foldery tego chomika: