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

Chris Mercer

JULY 15, 2022

Business appraisers routinely use the discounted cash flow model to value entire businesses. Deja Vu #1: SEC Rule 144 (Pre-1997) as Background for Restricted Stock Discounts. Deja Vu #2: The SEC Institutional Investor Study (Published 1971) (Average Discount = 26%).

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

Valutico

SEPTEMBER 13, 2023

Valuing a Small and Medium-sized Enterprise (SME) involves assessing the company’s financial performance, assets, market position, and growth potential. Since SMEs often have distinct characteristics like varying cash flows and limited resources, these factors must be carefully considered to arrive at an accurate valuation.

Discounted Cash Flow 52

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

Chris Mercer

MARCH 8, 2023

This post provides a discussion of several implications of the definition of the standard of value known as fair market value. We focus first on the definition of fair market value. We then look at the implications for the so-called “marketability discount for controlling interests.”

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52