Lower return for control?
This is in response to the article on the first page of the March 2001 BV Update. I prefer to follow a different line of reasoning in thinking about the control premium idea, partly based ...
Simplot Reversed by 9th Circuit; Control Premium for Voting Shares Incorrectly Applied
This case is the 9th Circuit Court of Appeals' decision on appeal of Estate of Simplot v. Commissioner, 112 T.C. No.13 (1999), which was abstracted in the May 1999 issue of Shannon Pratt's Business Valuation Update.
Estate of Simplot v. Commissioner (II)
Ninth Circuit reversed and ordered entry of judgment in favor of the estate on remand because the Tax Court erroneously attributed a premium to minority voting stock.
Estate of Hoffman v. Commissioner
At issue is the fair market value of property interests held by decedent at the time of her death.
Appraisers Apply Myriad of Valuation Techniques to Various Estate Holdings
Marcia Hoffman's (decedent) estate held a 27.5% interest in Clubside Partnership, which was family owned.
Ibbotson's SBBI 2001 Valuation Edition has enhanced features
Reviewed by Ronald L. Seigneur, MBA, CPA/ABV, CVA* 2001 SBBI Valuation Edition Yearbook , Ibbotson Associates. 225 North Michigan Avenue, Suite 700, Chicago, IL 60601-7676, (800) 758-3557, Fax ...
The IRS' 'More Reliable' Valuation Accepted Over Estate Valuation
This case involves a hearing on remand from the 9th Circuit to provide sufficient analysis of the consideration value of common and preferred stock in two closely held companies transferred and received by Cyril Magnin, the life estate holder.
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 ...
Which small stock premium?
This year in the cost of capital exhibit each month, youve added the equity risk under both the S&P 500 and the NYSE 1-2 columns. I apparently missed when you should refer to one or the ...
Emerging Valuation Trends in Delaware
n EMERGING VALUATION TRENDS IN DELAWARE, Nolen, Samuel S., and Silberglied, Russell C. The Review of Securities & Commodities Regulation , Vol. 31, No. 14, August 1998. This article be ...
New measures of risk that really work!*
I've often said that the greatest challenge for skilled business appraisers is to quantify risk and translate the results into a required rate of return (discount rate). The latest work of Roger Gra ...
Liquidity Discount Inappropriate in Fair Value Case
The issue in this judicial appraisal action was the fair value of petitioners' 500,000 shares of WXL International Inc.
PriceWaterhouseCoopers Updates Risk Premia Study
PricewaterhouseCoopers has released a new study by Roger Grabowski and David King that documents the historical relationship between company size and average rates of return. The new study covers the period 1963 through 1998 and is an update of material presented in the August 1997.
Borruso v. Communications Telesystems International
At issue is the fair value of the shares of common stock of WXL International, Inc. ("WXL"), a Delaware corporation, on the date on which WXL was merged with a with and into its parent corporation, Communications Telesystems International.
Court Concludes Fair Value Is 30 Times Price, Originally Offered Marketability Discount Inappropriate in Delaware Fair Value Case
The issue in this judicial appraisal action was the fair value of petitioners' 500,000 shares of WXL International Inc. (WXL).
Matthews critiques Mercers Simplot case review
Chris Mercer reviewed the Simplot case in the May 1999 issue of BVU , page 1. Gil Matthews, an IRS expert in the case, offers the following critique of Mercers review.–SP In his review ...
DCF Method Appropriate for Valuing General Contractor
In 1992, May Rakow gave 1,780 shares of Illinois Hydraulic Construction Co. (IHC) stock to her children and grandchildren.
1999 Guide to Business Valuations has "fair value" chapter, much more
The new 1999 Guide to Business Valuations contains more new material than any edition in several years.
Rakow v. Commissioner
At issue is the fair market value of stock given by petitioner to her children and grandchildren.
Court Accepts Expert's Value Based on 'Thoroughness and Credibility'
Trapp Family Lodge Inc. (TFL) gave notice of a special meeting of shareholders to vote on a proposed merger.
Control premiums? Maybe, maybe not'34% of 3rd Quarter buyouts at discounts
Valuation analysts who use the guideline public-company valuation method and then automatically tack on a percentage "control premium" based on Mergerstat Review control premium averages, had bett ...
In re 75,629 Shares of Common Stock of Trapp Family Lodge, Inc.
At issue is the admittance of expert testimony and the valuation of the corporation's stock.
Court Accepts Expert's Value Based on 'Thoroughness and Credibility': First Judicial Interpretation of Vermont Dissenters' Rights Statute
The issue in this judicial appraisal action was whether the trial court erred in adapting the valuation of $63.44 per share.
Tax Consequences, Shareholders’ Agreement and a Control Premium
The Vermont Supreme Court affirmed the lower court's valuation of dissenter's stock in a resort lodge.
Business Valuations: Advanced Topics
Kasper, Larry J., Business Valuations: Advanced Topics , Quorum Books: 88 Post Road West, Westport CT 06881; (203) 226-3571; $69.50 Kasper's book is an attempt to explain the "why," and not just th ...