Andaloro v. PFPC Worldwide, Inc.
PNC Financial Services Group, Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding's subsidiary, PFPC Worldwide, Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.
Montgomery Cellular Holding Co., Inc. v. Dobler
Verizon Inc. had offered to buy MCHC’s majority holder, Palmer Wireless Holdings (Palmer), if Verizon’s initial public offering was successful and if Palmer could acquire 100% of the stock in all of the companies it held.
In re Toys “R” Us, Inc., Shareholder Litigation
One of the issues was whether the board’s financial advisor, Credit Suisse First Boston (First Boston), correctly excluded a control premium in its assessment of the company’s value, and, thus, whether the board failed to reasonably consider the value of ...
Matthews critiques Mercer's Simplot case review
In his review of Estate of Richard R. Simplot v. Commissioner , 112 T.C. No. 13 (1999), Chris Mercer missed the principal point of the decision. The key issue was whether the premium for v ...
Expert dubbed "unpersuasive" rebuts Judge Laro's rejection
I have reviewed the write up of Estate of Kaufman in the May issue of your newsletter, and I am very concerned that it unfairly portrays me as having not done a credible valuation because it takes Judge Laro's criticisms of my report at face value.
“The small firm risk premium remains largely a myth”
This article is another installment in the long-running debate about whether small companies are riskier than large companies, all other things being equal.
Valuers should lower equity risk premium component of discount rate
I am now convinced that the long-term arithmetic average general equity risk premium (currently 7.0%) is too high.
Tax Court Accepts Negative Industry Risk Premium and Unique Combined Discount Matrix
The decedent, Helen Deputy, formed a family limited partnership comprised of 99% of a limited partnership interest retained by Deputy and two 0.5% general partnership interests, one held by Deputy and one held by her son.
Estate of Deputy v. Commissioner
Issue was the fair market value of a 19.99% interest of stock owned by an FLP, and court discussed negative industry risk premium and unique matrix for determining marketability discount.
Valuation 'Experts' Excluded as Unreliable Based on Numerous Errors in Methodology and Inability to Explain Conclusions
In this bankruptcy adversary proceeding, the trustees as plaintiffs sought to prove that the defendants—Bairnco Corp., Keene Corp., and the individual managers of the companies—had engaged in a series of fraudulent conveyances among subsidiaries to protect assets from the reach of asbestos claimants.
Lippe v. Bairnco Corp. (I)
In this bankruptcy adversary proceeding, the trustees as plaintiffs sought to prove that the defendants—Bairnco Corp., Keene Corp., and the individual managers of the companies—had engaged in a series of fraudulent conveyances among subsidiaries to protect assets from the reach of asbestos claimants.
How to use the Valuation Advisors database: A hypothetical example
By Brian K. Pearson * We at Business Valuation Resources are proud to be selected as the distributor for yet another valuable resource to help business appraisers in quantifying marke ...
Market data for M&A
How to Use Transactional Databases for M&A , Shannon P. Pratt, The Journal of Corporate Accounting & Finance , March/April 2002, pp. 71-79. In M&A, it is helpful to compare th ...
Valuation multiples and control premiums down in 4th quarter 2001
With five valuation multiples plus control premiums for almost 3,000 transactions spread over 16 quarters now in the Mergerstat/Shannon Pratt's Control Premium Study (CPS ), it becomes quite inter ...
Mergerstat / Shannon Pratt's Control Premium Study and Mergerstat® Review are two distinct services
One of the questions I am asked frequently is, What is the difference between Mergerstat/Shannon Pratt's Control Premium Study ( Control Premium Study ) and Mergerstat® Review? This column addres ...
Specific company risk factor
In Dr. Pratts book, there is (page 76) "The Specific Risk Factor" and the "Expanded CAPM Cost of Capital Formula." This is a very basic question: The use of the expanded model, which include ...
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 ...
From experts in valuation in each of nine industry groups to a takeoff on Survivor, AICPA BV Conference offers variety
The 2001 AICPA Business Valuation Conference held at the Venetian in Las Vegas December 2-4 was attended by 840 people (by the way, the Venetian served the best conference food that I've ever experienced).
More evidence that small company stocks have additional risks
This column provides further evidence that the "size effect" is real. That is, smaller companies are , on average, riskier and therefore investors do require higher expected returns to invest in th ...
Cost of capital data
I have just subscribed to the Shannon Pratts Business Valuation Update and I have a couple of questions about the information reported in the Cost of Capital section of your newsletter. M ...
Control Premium Study shows decline in market multiples
Mergerstat/Shannon Pratt's Control Premium Study , published by Mergerstat, LP, 2001. Distributed by Business Valuation Resources, LLC, 7412 SW Beaverton-Hillsdale Hwy., Suite 106, Portland, OR ...
State of the art reference for all discounts and premiums issues
by Rand M. Curtiss, FIBA, MCBA, ASA, ASA, Loveman-Curtiss, Inc. Business Valuation Discounts and Premiums , Shannon P. Pratt, John Wiley & Sons, September 2001. Available from Business V ...
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 ...
2001 ASA International Appraisal Conference, part 1
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Pa., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that this ...
www.BVMarketData.com sm expands
By Doug Twitchell * In addition to the newsletter you are now reading, Business Valuation Resources, LLC , also brings you several other business valuation-oriented products at www.BVMarket Dat ...