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Business Valuation

In: Business and Management

Submitted By joystation2
Words 12693
Pages 51
UCLA EXTENSION – BUSINESS VALUATION
MGMNT X 430.132 – Professor Walton

WALTON DRILLING LLC
VALUATION REPORT

By James Lin & Lea Jovanovic for ‘Mike’ (a seller)
Spring Quarter 2013

TABLE OF CONTENTS

1. Identification of the Interest Appraised page 4 2. Date of the Report page 4 3. Standard of Value page 4 4. Intended Use of the Report page 4 5. Name of Client page 4 6. Names of Appraisers page 4 7. Valuation Approaches Considered and Used page 4 8. Sources of Information Relied On page 4 9. Description of Business & Recent Developments page 6 10. Relevant Economic and Industry Analysis page 6 11. Risk Factors page 7 12. Disclosure Regarding Forward Projections page 8 13. Financial Outlook page 8 14.1 Selected Financial Data from 10K (2008-2012) page 8 14.2 Income Statement (2008-2012) page 9 14.3 Cash Flow (2010-2012) page 9 14. The Income Approach page 10 15.4 Net Cash Flow page 10 15.5 Discounting page 10 15.6 The Build-Up Model page 10 15.7 Risk-Free Rate page 10 15.8 Equity Risk Premium page 10 15.9 Size Premium page 11 15.10 Industry Adjustment page 11 15.11 Company-Specific Risk Adjustment page 11 15.12 Estimated Equity Discount Rate page 11 15.13 Weighted Average Cost of Capital page 11 15.14 Adjustments page 12 15.15 Assumptions page 12 15. The Market Approach page 16 16.16 Guideline Publicly Traded Company Method page 16 16.17 Guideline Companies Selection page 16
15.2 (a) Buyer’s Criteria page 16
15.2 (b) Appraisers’ Reasoning in Selecting the...

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