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 ...
Diamond v. Diamond
Issues were whether the trial court erred in determining the value of Language Learning Enterprises, Inc. and in its award of the wife's interest in the company.
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).
Panel challenges traditional levels of value chart at the 20th Advanced Business Valuation Conference
The 20th annual American Society of Appraisers (ASA) Advanced Business Valuation Conference was a huge success, despite attendance of only about 325 compared to pre-Sept. 11 projections of 450 attende ...
What's new online
Ordering online now available at BVResources.com sm We are excited to announce that we have revamped our BVResources.com sm Web site and enabled the electronic ordering feature in our onlin ...
What's New Online
At BVLibrary.com sm The What's New section at BVLibrary.com sm is free and contains links to the Definition of the Week, Shannon's Tip of the Week, What's Happening, and Sale of the Month.
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 ...
FMV to release its restricted stock study
Bringing Sanity to Marketability Discounts: A New Data Source, Espen Robak and Lance S. Hall , Valuation Strategies , July/August 2001, pp. 6-13, 45-46. Over the years, several approaches h ...
2001 ASA International Appraisal Conference, part 2 of 2
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Penn., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that th ...
The value of marketability as illustrated in IPOs: May 1997 - December 2000
A critical aspect in determining the fair market value of closely held securities is the discount for lack of marketability. The term discount for lack of marketability is a general term in business v ...
What's new online at BVLibrary.com
BVLibrary is a website designed with the business valuation professional in mind. It offers instant access to the latest business valuation research ...
BVR provides access to more marketability discount data
BVR announces the addition of Lance S. Hall to the Editorial Advisory Board of Judges & Lawyers Business Valuation Update and the addition of the FMV Restricted ...
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 ...
2000 marketability discounts as reflected in initial public offerings
This interview by Alina Niculita is based on the Valuation Advisors Study of pre-IPO transactions for the year 2000. The complete article describing the study is available on BVLibrary.com ...
Buy-Sell Agreements Fail Lauder II Test and Are Considered Testamentary Devices
This 336-page estate and gift case deals with a $75,935,883 tax deficiency and $30,328,153 in associated penalties asserted by the IRS.
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.
Succession Planning for the Owners of the Closely-held Business
Mark B. Edwards ALI-ABA Course of Study Materials: Estate Planning for the Family Business Owner , March 2001, Volume I This practical guide to intergenerational wealth transfers of closely h ...
Estate of Schwan v. Commissioner
At issue is the valuation of the decedent's stock in a closely-held corporation for purposes of computing the gross estate and the allowable charitable deduction under Federal tax laws.
Redemption Agreement Did Not Affect Value of Decedent's Estate
The petitioners in this case, decedent's estate and a charitable foundation (the Martin M. Schwan Foundation), challenged the IRS' determination that the estate had a tax deficiency based on a bequest to the foundation and that the foundation was liable as a transferee.
BV online library a valuable resource
A resource that is often overlooked by lawyers in their research and preparation of a case is the BV online library, accessible at BVLibrary.com . The staff at Business Valuation Resources has spent considerable time in recent months expanding the content and improving the look and functionality of BVLibrary.com.
Estate of True v. Commissioner
1Cases of the following petitioners are consolidated herewith: Jean D. True, docket No. 3408-98 and Estate of H.A. True, Jr., Deceased, H.A. True, III, Personal Representative, docket No. 3409-98. T.C. Memo. 2001-167 UNITED STATES TAX COURT ESTATE OF H.A. TRUE, JR., DECEASED, H.A. TRUE, III, PERSONAL REPRESENTATIVE, AND JEAN D. TRUE, ET AL.1, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 10940-97, 3408-98, Filed July 6, 2001. 3409-98. Buford P. Berry, Emily A. Parker ...
Buy-Sell Agreements Are Testamentary Devices
This 336-page estate and gift case deals with a $75,935,883 tax deficiency and $30,328,153 in associated penalties asserted by the IRS.
Buy-Sell Agreements Do Not Control for Estate Tax Purposes
The Tax Court considered whether buy-sell agreements controlled the value of the business interests the decedent held for estate and gift tax purposes.
Marital dissolution courts continue to struggle with stock options
In the first six months of 2001, state divorce courts have continued to grapple with the treatment of stock options as a distributable asset upon divorce. The appellate courts in Pennsylvania, Idaho ...
ESOPs Often Overlooked as a Planning Tool for Corporations and Shareholders
Kober, John A. Insights , Spring 2001 An ESOP is a plan under which the employees of a company can acquire the stock of that company. This type of contribution plan is distinguished from other ...