Determining the FMV of Privately Held Promissory Notes

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Training Event Transcripts
March 3, 2023
Bruce A. Johnson, ASA
fair value for financial reporting, estate and gift taxation
risk analysis, appraisal, estate & gift, promissory note


Privately held promissory notes need to be valued for gift/estate, tax, and related-party transactions. These appraisals must objectively consider the same risk and reward relationship that we use when valuing an operating company. However, the data sources that have historically been used are problematic. For example, corporate bonds from publicly traded companies are not typically comparable because publicly traded companies are large, diversified, and represent lower risk. This webinar will present a better source of comparable data that can be used to calculate a proper discount rate accurately and use real-world examples to illustrate the methodology.
Determining the FMV of Privately Held Promissory Notes
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