Synopsis
In-depth coverage of the valuation of accounting practices and ofpartial ownerships in those practices
Fundamental concepts and approaches related to accounting practices
* Illustrative income approach valuation methods
* Illustrative market approach valuation methods
* Illustrative asset-based approach valuation methods
* Preparing the overall accounting practice valuation synthesis andconclusion
* Identification and quantification of accounting practicevaluation discounts and premiums, and other special topics relatedto the valuation of partial ownership interests
* Special topics related to the valuation of accounting practices
* Reporting the results of the accounting practice appraisal
This comprehensive guide covers every aspect of accounting firmvaluation, from determining the circumstances in which theprocedure should be undertaken to compliance with standards forreporting valuation results. It provides a solid conceptual andtheoretical foundation for the analysis and appraisal of accountingpractices along with numerous practical applications andillustrations.
The main body of the book is divided into four sections. The firstsection addresses the planning stages of the valuation, includingmotivations for conducting an appraisal, its purpose and objective,professional valuation standards, selecting a valuation approach,and data gathering. In the second section, specific accountingpractice valuation methods are discussed and illustrated. Theseinclude market-based, income-based, and asset-based methods. Thissection also examines the process of determining the overall valueof the business.
The third section of Valuing Accounting Practices focuses on thevaluation of fractional or partial interests in an accounting firm.A large part of this discussion centers on the identification andvaluation of discounts and premiums related to partial or minorityownership, with an emphasis on marketable versus nonmarketableinterest and discounts for lack of marketability. Topics includeempirical research, factors affecting marketability, considerationof transferability restrictions, and discounts and premiums forother nonsystematic factors. The fourth section defines standardsfor accounting practice valuation reports and provides acomprehensive sample report. Lastly, special practice valuationtopics are discussed.
Supplemented with numerous checklists, quantitative examples,appendices, and bibliographies, this handbook is an indispensableresource for accountants and appraisers who value accountingpractices. It is an excellent guide for sole practitioners ormembers of small and medium-size accounting firms who need toconduct self-appraisals for merger negotiations, new firmformation, litigation, or any other reason. It is also an importantreference for divorce attorneys.
About the Author
ROBERT F. REILLY is Managing Director for Professional Services atWillamette Management Associates. A former partner and nationaldirector of the Deloitte & Touche Valuation Group, Mr. Reillyis widely recognized for both his professional achievements and hisintellectual contributions to the profession. He is a frequentcontributor to professional journals--including ManagementAccounting, the Journal of Pension Planning and Compliance, and theJournal of Property Tax Management--and he is a regular columnistfor the American Bankruptcy Institute Journal. Mr. Reilly iscoauthor (with Robert Schweihs and Shannon Pratt) of three previousbooks.
ROBERT P. SCHWEIHS is Managing Director of Willamette ManagementAssociates. He was founder, national partner, and national directorof valuation services for Valuation Engineering Associates, abusiness unit of Deloitte & Touche LLP. A much sought afterspeaker and conductor of professional seminars, Mr. Schweihs isalso a prolific author. He has published numerous articles inprofessional journals and coauthored three books (with RobertReilly and Shannon Pratt).
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