Chris Mercer

JULY 15, 2022

Business appraisers routinely use the discounted cash flow model to value entire businesses. Deja Vu #9: Pre-IPO Discounts Do Not Provide Valid Evidence for Marketability Discounts. The same valuation theory applies to both. The Discounted Cash Flow Model for Businesses.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

Chris Mercer

FEBRUARY 23, 2024

In Mercer’s Musings #2, we discussed the old and cold data on restricted stock transactions that have been misused by appraisers for decades. This conclusion applies to all appraisals, including those prepared for the Internal Revenue Service. In other words, value is a function of expected cash flow, growth, and risk.

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Valutico

SEPTEMBER 13, 2023

The three main methods for SME valuation are the Income Approach (e.g. Discounted Cash Flow analysis), Market Approach (e.g. net asset value calculation). The Discounted Cash Flow (DCF) is a leading valuation method that calculates value based on future cash flows, considering time value of money.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Chris Mercer

MARCH 8, 2023

We then look at the implications for the so-called “marketability discount for controlling interests.” ” We look at this “discount” from the vantage points of the definition of fair market value, the integrated theory of business valuation, and recurring and incorrect rationales for the discount.

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52