"More than a decade after the publication of Business Valuation: An Integrated Approach, second edition, the core concepts of the integrated theory remain the same. Business value, at any level, is a function of expected cash flows, expected risk, and the expected growth of the cash flows. The second edition was written from the perspective of valuing the net equity of companies. As a result, the emphasis was on equity cash flows and equity discount rates. This analysis remains valid and will be extended. However, during this time, there has been an increasing awareness among appraisers that private companies are bought and sold on an enterprise value basis, inclusive of equity and debt, and not with reference to net equity value alone. The third edition will extend the analysis and concepts to an enterprise |