Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
IPOs at 4-year high in 2004; Pre-IPO discounts hold steady
The IPO market rebounded in 2004 from a severe three-year depression in 2001-2003, and average discounts in the one to two years Pre-IPO time frame for transactions prior to the IPO’s essentially held steady compared to the prior three years but were belo ...
2001 in review: BVU and J&L combine; active year in court
Databases proliferate; seven new BV books; market multiples drop As a result of subscribers' feedback from focus groups and reader surveys in 2001, we have decided to combine Judges & Lawyer ...
Rebuttal to Bajaj: answers to criticisms of pre-IPO studies
Pre-IPO transactions should be presented in every valuation case regarding a discount for lack of marketability.
Business valuation tax law book now is finally complete
It has taken over four years since Judge David Laro and I first conceived a joint book, but he and I finally finished the page proofs last week.
Discount rates based on CAPM don't always lead to minority value
The following quote from the fourth edition of Valuing a Business , contained at page 161 in the chapter titled "The Income Approach: Discounted Future Income Method," apparently has been misconstrue ...
Estate of Jelke is a poor decision for taxpayer
Estate of Jelke, a C corp holding a portfolio of stocks, had these issues before the Tax Court: (1)Amount of discount for trapped-in capital gains (2) Amount of discount for lack of control and (3) Amount of discount for lack of marketability.
Comments on the reversal of Simplot
I'm relinquishing my Editor's Column space in this issue in favor of Gil Matthews' reaction to the U.S. Court of Appeals' reversal of the Tax Court decision in Simplot . - SP By Gilbert E. Matt ...
Discretionary earnings valuation method used for smaller companies
The "multiple of discretionary earnings method" is gaining acceptance as a method for valuing small companies, but the user must understand it, or it may be misapplied. Three key questions To ...
Business Valuation Update now available online
We have recently achieved a goal that I regard as a significant milestone in making Business Valuation Update even more timely and useful for our subscribers: the ability to access our publication online. Needless to say, this new feature will be another tool to help efficiently obtain information, and, ultimately, perform better business valuations. Versatile search capabilities Now you can quickly find everything we have ever written about marketability discounts, family limited partnerships, ESOPs, goodwill ...
2003 in review: many developments in tax and divorce; other BV issues
When I looked back over the 2003 issues of this newsletter, I was surprised at the number and variety of developments significant to the business valuation profession.
Burkert on Advanced Business Valuation Report Issues: What Does Your Report Roadmap Look Like?
I recently reviewed a valuation report for an experienced appraiser. The body of the report started off with an introduction that focused on the engagement (premise of value, standard of value, type of report, etc.) and included a three-line reveal about ...
ASA hosts record-breaking BV conference Many conference papers plus IRS manual added to BVU Online Part 1 or 2 parts
Over 500 business valuation professionals attended the American Society of Appraisers 16th Annual Advanced Business Valuation Conference held October 23-24, 1997, at the Palace Hotel in San Francisco.
Small stock risk premium no myth; size does matter
Until about a year ago, I thought that, on average, the fact that small stocks are riskier than large stocks had been firmly established in the financial community, and that attacks on the "small stoc ...
Institute of Business Appraisers 20th anniversary conference open with IRS attorney; closes with estate planning attorney
n LITIGATING ISSUES IN THE FAMILY LIMITED PARTNERSHIP ARENA Melanie Urban, Esq. Internal Revenue Service Houston, TX Ms. Urban opened with a declaration that there are two things that the IR ...
Mercer's "Quantifying Marketability Discounts" uses DCF model
Reviewed by Shannon Pratt Mercer, Z. Christopher , Quantifying Marketability Discounts : Developing and Supporting Marketability Discounts in the Appraisal of Closely Held Business Intere ...
Marketability discounts hot topic in multiple presentations at IBA 2003 Conference
This article presents short abstracts of the general sessions and a listing of the track sessions presented at the 2003 IBA Conference held at the Walt Disney Contemporary Resort in Orlando ...
Revised Levels of Value Chart
Is it true that this new chart will permit application of the discounts related to illiquidity and marketability prior to taking a discount for lack of control?
Court notes expert qualifications
In your recently published Special Report, " Marketability Discounts in the Courts ," by Dr. Hamilton, I was interested to see one of our cases mentioned in the Bankruptcy category: Minnelus ...
Mercer responds to Engstrom analysis
The QMDM is offered in the context of what, I believe, is sound financial theory. And that theory is evolving. As indicated in Quantifying Marketability Discounts , the QMDM begins with an ...
Discounts and premiums must be supported with empirical data
In my April 2001 Editor's Column I discussed the treatment of marketability discounts in court cases, and briefly touched on empirical data to support those discounts. This column is a follow-up and includes an expanded discussion of the empirical studies available not only for marketability discounts, but for control premiums and minority discounts as well.
Hedging and the estimation of marketability discounts
When estimating discounts for lack of marketability, many analysts do not consider the differences between various types of restrictions on marketability.
Yes, you can calculate precisely the present value of a growing annuity
On page 276 of Christopher Mercers text, Quantifying Marketability Discounts , Mr. Mercer states, "[W]e know of no precise formula to calculate the present value of a growing annuit ...
Looking for empirical data on real estate partial interests
I am looking for empirical data on marketability discounts for fractional interests in real property, particularly commercial property located in California. Do you or your staff have any so ...
Dr. Bajaj responds to Dr. Pratts February 2002 Editorial: Bajaj attacks restricted stock and pre-IPO discount studies; Pratt replies, defending studies, notes that debate may be semantic
In the last issue, Dr. Shannon Pratt critiqued my co-authored paper, Firm Value and Marketability Discounts, forthcoming in Journal of Corporation Law . 1, 2 I would like to take this op ...
Marketability discounts hot topic in multiple presentations at IBA 2003 Conference
This article presents short abstracts of the general sessions presented at the 2003 IBA Conference held at the Walt Disney Contemporary Resort in Orlando, Fla. from May 31-June 4. Audiotape ...