Fair Market Value: A Complicated Standard

Business Valuation UpdateVol. 30 No. 1
January 2024
Mark O. Dietrich, CPA
valuation methods & approaches
fair market value (FMV), hypothetical buyer, synergy

Summary

This article was triggered by a recent article by Jim Hitchner that maintained that it is a “myth” that fair market value assumes a financial buyer, without synergistic benefits. The author believes the answer to the question is more nuanced than the term “myth” suggests, which prompted him to revisit his thinking on the concept.