comprehensivevaluationbook,andrepeatingwhatwassaid
inthatbookhere,incompressedform,strikesmeasawaste
of time and resources.
This bookhas threeparts to it.Thefirst twoparts, which
stretchthroughthefirstninechapters,provideacompressed
versionofboth discountedcash flowandrelativevaluation
modelsandshouldbefamiliarterritoryforanyonewhohas
done orreadaboutvaluationbefore.Thethirdpart,which
comprisesthelastninechapters,isdedicatedto lookingat
whatIcallthelooseendsinvaluationthatgetshortshriftin
both valuation books and discussions. Included here are
topics like liquidity, control, synergy, transparency, and
distress,allofwhichaffectvaluationssignificantlybuteither
aredealt with in a piecemealfashion or take theform of
arbitrarypremiumsand discounts.Youwillnoticethatthis
sectionhasmorereferencestopriorworkintheareaandis
denser, partlybecausethereismoredebate aboutwhat the
evidenceis and what weshould do in valuation.I donot
claimtohavetheanswertowhatthevalueofcontrolshould
beinafirm,butthechapteroncontrolshouldgiveyouaroad
mapthatmay helpyoucomeup with theansweron your
own.
ThefourbasicprinciplesthatIlaidoutinthePrefacetothe
first edition continue to hold on this one. First, I have
attemptedtobeascomprehensiveaspossibleincoveringthe
range ofvaluation models thatare available to an analyst
doingavaluation,whilepresentingthecommonelementsin
thesemodelsandprovidingaframeworkthatcanbeusedto
picktherightmodelforanyvaluationscenario.Second,the
modelsarepresentedwithreal-worldexamples,wartsandall,
soasto capturesomeoftheproblemsinherentin applying