Ignoring non-compete and/or employment agreements often causes overvaluations

Business Valuation Update
May 18, 2001
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
bankruptcy, buy-sell agreement, fair market value (FMV), market approach, internal revenue service (IRS), pratt's stats (PS), employment agreement

Summary

An important adjustment that many business appraisers, attorneys, and courts often overlook is the deduction of the value of a non-compete agreement and/or employment agreement in reaching a conclusio ...