Chapter 1 Valuation for Arbitration： An Introduction 1
Chapter 2 Basic Valuation Approaches 7
Ⅰ Three Approaches 8
Ⅱ Actual Transaction Price 17
Ⅲ Limits on Forward-Looking Compensation 21
Ⅳ Utilizing Several Valuation Methods 26
Ⅴ Market Value 30
Ⅵ Contract-Based Damages 38
Ⅶ Diminution of Value and Business Interruption Damages 42
Ⅷ Sunk Investment Costs and Criticisms of Market Value 49
Ⅸ No Market Exists 58
Ⅹ Subsequent Events 60
ⅩⅠ Common Legal Limits to Compensation 70
1 Market Value Too Speculative 70
2 Not a Going Concern 91
3 Foreseeability 102
4 Lack of Causation and Contributory Fault 105
5 Burden of Proof 111
6 Mitigation 113
7 Unjust Enrichment and Other Equitable Considerations 115
Chapter 3 Comparability 119
Ⅰ Timing 125
Ⅱ Public vs.Private 126
Ⅲ Products and Services Markets 126
Ⅳ Geographic Location 127
Ⅴ Size 128
Ⅵ Capital Structure 128
Ⅶ Debt and Non-cash Consideration 129
Chapter 4 Important Components of DCF Valuations 131
Ⅰ Discount Rates 140
1 Build-Up Procedure 143
2 Weighted Average Cost of Capital （WACC） 159
3 Capital Asset Pricing Model （CAPM） 163
4 Weighting the Debt and Equity Capital Costs 168
5 Contemporaneous Business Forecasts 170
Ⅱ Direct Equity vs.Indirect Equity （Total Invested Capital） Methods 173
Ⅲ Projection Periods 177
Ⅳ Terminal Value 181
Ⅴ Taxes 191
Ⅵ Year-End Convention vs.Mid-Year Convention 195
Ⅶ Enterprise Value， Equity Value and Business Segments 197
Ⅷ Double Counting 198
Ⅸ Specific Forecast Items： Non-operating Assets， Interest， Foreign Exchange Rates and Minority Interests as Illustrations 201
1 Non-operating Assets 201
2 Interest Rates 202
3 Foreign Exchange Rates 206
4 Minority Interests 206
Chapter 5 Adjusted Present Value （APV） Method 209
Chapter 6 Capitalized Cash Flow （CCF） Method 215
Ⅰ Introduction 215
Ⅱ Market Multiples 219
Ⅲ Time Periods 228
Chapter 7 Asset-Based Methods， Particularly Adjusted Book Value （ABV） 231
Ⅰ Introduction 231
Ⅱ Historical Amounts， Intangibles and Goodwill 239
Ⅲ Liabilities 245
Ⅳ Valuations by Categories 246
Ⅴ Double Counting 250
Ⅵ Liquidation Value 250
Chapter 8 Discounts 253
Ⅰ Minority Discount （DLOC） 256
Ⅱ Discount for Lack of Marketability （DLOM） 258
Ⅲ Overlap 261
Chapter 9 Checklist for Interest 265
Ⅰ Legal Sources of Interest Calculations 266
Ⅱ Currency 268
Ⅲ Fixed or Floating 268
Ⅳ Day Count 274
Ⅴ Compounding 275
Ⅵ Beginning Dates for Interest Accrual 276
Ⅶ Miscellaneous Questions 277
Chapter 10 What Can the Careful Arbitrator Do？ 279
Ⅰ Advance Planning 280
Ⅱ Ranges of Estimates： Audit Trail 286
Ⅲ Standards of Conduct for Party-Appointed Experts 287
Ⅳ Expert Exchanges 299
Ⅴ Obtaining the Financial Models 301
Ⅵ The Tribunal-Appointed Expert 304
Appendix 1 List of Current IVSC Members， Observers and Correspondents from ＜www. ivsc.org/members.html＞.Current as of April 13， 2008 315
Appendix 2 AICPA Statement on Standards for Valuation Services No.1： Valuation of a Business， Business Ownership Interest， Security， or Intangible Asset （SSVS No.1）， Including the International Glossary of Business Valuation Terms 319
Appendix 3 The Chartered Institute of Arbitrators Protocol on Instructions to Party-Appointed Expert Witnesses 375
Appendix 4 The Chartered Institute of Arbitrators Guideline 10 on the Use of Tribunal-Appointed Experts， Legal Advisers and Assessors 381
Index 391