Valuation: Measuring and Managing the Value of Companies, Fifth Edition

Acknowledgments

No book is solely the effort of its authors. This book is certainly no exception, especially since it grew out of the collective work of McKinsey’s corporate finance practice and the experiences of its consultants throughout the world.

Most important, we would like to thank Tom Copeland and Jack Murrin, two of the co-authors on the first three editions of this book. We are deeply indebted to them for establishing the early success of this book, for mentoring the current authors, and for their hard work in providing the foundations on which this edition builds.

Ennius Bergsma deserves our special thanks. Ennius initiated the development of McKinsey’s corporate finance practice in the mid-1980s. He inspired the original internal McKinsey valuation handbook and mustered the support and sponsorship to turn that handbook into a real book for an external audience.

Concurrent with this fifth edition, McKinsey is publishing a shorter book, entitled Value: The Four Cornerstones of Corporate Finance, which explains the principles of value and their implications for managers and investors without going into the technical detail of this how-to guide to valuation. We’ve greatly benefited from the ideas of that book’s co-authors, Richard Dobbs and Bill Huyett, as well as the lead editor, Neil DeCarlo.

Of course, we could not have devoted the time and energy to this book without the support and encouragement of McKinsey’s corporate finance practice leadership, in particular Christian ...