Chris Mercer

FEBRUARY 8, 2024

This first musing relates to the need (or not) to comply with the Uniform Standards of Professional Appraisal Practice promulgated by The Appraisal Foundation in gift and estate tax appraisals prepared for the Internal Revenue Service. Regarding business appraisers, I cannot find a direct requirement that USPAP be followed.

Appraisal 52

Appraisal Business Valuation Business Enterprise Dividends 52

Chris Mercer

MARCH 29, 2024

Whether there was a formal appraisal or not at the pre-IPO transaction date, there was an implied marketable minority/financial control (base) value for that entity at that date. per share value was likely unobserved unless the transaction was based on an appraisal. The private company is expected to pay a dividend that will yield 6.5%

Marketability 52

Marketability Appraisal Business Valuation Dividends 52

Appraisal Rights

APRIL 3, 2018

If a company structures a merger to avoid appraisal rights, does a shareholder have no recourse? How are appraisal rights involved? The consideration for the share issuance takes the form of a onetime cash dividend for $103.75 That question will no doubt be part of the debate as City of North Miami Beach v. is litigated.

Appraisal 40

Appraisal Dividends Marketability 40

Chris Mercer

JULY 15, 2022

Business appraisers routinely use the discounted cash flow model to value entire businesses. Appraisers cannot punt on this assumption because of lack of certainty. Expected Dividends/Distributions. Appraisers cannot judge the difference in shareholder value in qualitative terms. Expected Growth in Distributions.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

Appraisal Rights

MARCH 6, 2019

These disputes are commonly triggered by the adoption of resolutions that involve capital stock increases, nondistribution of dividends, mergers or other complex corporate transactions, etc. Those rules often refer to rather complex formulas for appraisals, as well as expert opinions.

Appraisal 52

Appraisal Equity Dividends Banking 52

Appraisal Rights

APRIL 9, 2020

As a leading litigation firm in Illinois, Novack and Macey is able to provide seamless advice on appraisal rights, valuation disputes and other business disputes in Illinois and nationwide. State of Wisconsin Investment Board, 677 N.W.2d 2d 443, 450 (Minn.App.2004) 2004) and observing that courts valuing company shares must do so equitably).

Appraisal 52

Appraisal Fair Market Value Book Value Dividends 52

Appraisal Rights

NOVEMBER 18, 2019

While Delaware public appraisal arbitrage cases have focused on DCFs as the valuation method of relevance, it’s important to note that other valuation methods exist – and in fact are used in a variety of contexts.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Dividends Appraisal 52

Reynolds Holding

APRIL 19, 2022

Appraisal Rights for Beneficial Owners. The proposed amendments to Section 262 would entitle beneficial owners of stock to exercise appraisal rights directly, rather than requiring them to cause the record holder of their shares to demand appraisal on their behalf.

Appraisal 56

Appraisal Dividends Treasury Marketability 56

The Mentor Group

FEBRUARY 1, 2022

The value of a partial interest is the net value discounted to reflect the effects of some or all of the following: Minority – discount for lack of control (aka DLOC); minority owner cannot effect compensation; strategic and operational business decisions; dividend and distribution policy; and divestiture alternatives.

Dividends 40

Dividends Fair Market Value Equity Book Value 40

Chris Mercer

MARCH 8, 2023

Therefore, in every fair market value determination prepared by business appraisers, it is critical that both buyers and sellers are present for the negotiation. Every appraisal involves the specification of the relevant standard, or type of value. The dividend-paying capacity. The earning capacity of the company.

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Chris Mercer

APRIL 7, 2023

However, in most circumstances, transaction costs are not factored into the appraisal of the subject interest since the pricing information of frequently traded comparable securities is not adjusted for these factors.” Appraisers use transaction multiples from transactions in similar companies with the guideline transactions method.

Marketability 52

Marketability Fair Market Value Appraisal EBITDA 52

GCF Value

SEPTEMBER 28, 2022

In basic terms, you value a company with two variables, (1) cash flow to the owner (dividends to the investor), and (2) a required rate of return based on the risk of that investment. Please contact us here , and a GCF appraiser will get in touch with you directly. Basic Valuation Methodology. However, do not make it too complex.

Comps 52

Comps Dividends Appraisal Marketability 52

Farrel Fritz

JANUARY 22, 2024

For one, stock dilution impairs the minority owner’s ability to influence company action by voting his shares, and it lessens the owner’s right to participate pari passu in the distributions or dividends of the company. A member might also take guidance from the First Department’s decision in Lemle v Lemle , 92 AD3d 494, 497 [1st Dept 2012].

Equity 59

Equity Dividends Appraisal Marketability 59

GCF Value

JANUARY 7, 2021

Whether that future involves new financing, a sale or merger, additional equity participation – or new roads ahead as you plan an exit strategy, thoroughness and accuracy will pay more dividends than a speedy, plug-and-play deliverable. Please contact us here , and a GCF appraiser will get in touch with you directly.

Business Valuation 52

Business Valuation Appraisal Comps Dividends 52

Appraisal Rights

APRIL 9, 2019

Declare/pay shareholder dividends. Dividend-paying policy and history. Change the bylaws and articles of incorporation. Influence and control the board. Control management compensation. Sell, recapitalize or liquidate the company. Lease, liquidate or acquire business assets. Influence the company’s course of business. Sell the entity.

Business Valuation 40

Business Valuation Dividends Fair Market Value Equity 40

Chris Mercer

FEBRUARY 14, 2024

This second musing addresses the use of restricted stock studies to support marketability discounts in gift and estate tax appraisals prepared for the Internal Revenue Service (or for anyone, for that matter). This musing is addressed to all appraisers, regardless of which valuation credential(s) they hold. of Integrated Theory 3.

Marketability 52

Marketability Dividends Appraisal Business Valuation 52

Appraisal Rights

FEBRUARY 3, 2020

During the general assembly meetings, minority shareholders may request that discussions concerning approval of financial tables and other related subjects – such as release of board members or dividend distributions –be adjourned for one month. In the case of any justified reason ( g.

Dividends 52

Dividends Marketability 52

Farrel Fritz

AUGUST 1, 2022

But don’t get too nostalgic or shed too many tears for the third-generation owners, owing to their forebears who had the foresight to acquire not only the industrial property where Cornell manufactures the seltzer, but another eight commercial properties in close proximity, all told with a current appraised value over $40 million.

Book Value 52

Book Value Dividends Appraisal Equity 52

Musings on Markets

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Dividends and Potential Dividends (FCFE) 1. Dividend yield & payout 3. Buybacks 2.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

DECEMBER 21, 2022

and uses that endgame to cast light on the investing, financing and dividend decisions that all businesses, small or large, private or public, have to make. The class starts with a question of what the end game should be for a business (profitability, value, social good?),

Corporate Finance 89

Corporate Finance Finance Start-ups Marketability 89

Musings on Markets

AUGUST 5, 2023

In much of valuation, especially in the appraisal community, historical risk premiums remain the prevalent standard for measuring equity risk premiums, and there are a few reasons. Consequently, I add buybacks to dividends to arrive at an augmented measure of cash returned and use that as the base for my forecasts.

Risk Premium 78

Risk Premium Equity Start-ups Treasury 78

Musings on Markets

JANUARY 21, 2023

The first is the dividends you receive, while you hold stocks, a cash flow stream that provides a measure of stability to investors who seek it. Actual Returns Your returns on equities come in one of two forms. There are clearly input estimates that you can take issue with, especially on earnings and cashflows.

Equity 70

Equity Risk Premium Start-ups Dividends 70

ThomsonReuters

DECEMBER 7, 2022

There may be an estate tax due on the value of that apple orchard and you’d have an appraiser determi ne what the value is, and you would subtract any applicable deductions in a credit — there’s an $11.7 Aghdami continued , “ Think about a farmer who owns an apple orchard , and the farmer passes away.

Compliance 59

Compliance Dividends Banking Appraisal 59

Musings on Markets

DECEMBER 15, 2021

It is also, in every sense of the word, an applied class, with every concept applied to real companies that range the spectrum, across the life cycle, geographies and sectors.

Corporate Finance 56

Corporate Finance Finance Start-ups Technology 56

FE International

MARCH 23, 2022

Crucially, any owner salary/dividends can be added back to the profit number, too. Investors will likely appraise the business based on this benchmark alone and apply a multiple to arrive at the final business valuation. The ultimate appraisal of customer acquisition channels are the associated conversion and cost attached to each.

EBITDA 105

EBITDA Start-ups Business Valuation Marketability 105

Brian DeChesare

OCTOBER 11, 2023

Appraisal / Valuation Real estate appraisal is the process of valuing a property, which is essential when it is being sold. The biggest CRE brokerage firms, such as Jones Lang LaSalle (JLL) and CBRE, have appraisal teams, but many smaller firms and independent operators also do this.

Banking 78

Banking Private Equity Firm Start-ups Equity 78