Chris Mercer

JULY 15, 2022

Business appraisers routinely use the discounted cash flow model to value entire businesses. The value of all remaining cash flows after the finite forecast period is captured in the terminal value, which is, effectively, a capitalization of earnings or cash flows at the end of the forecast period.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

Chris Mercer

MARCH 7, 2024

” And the answer holds regardless of any certifications appraisers might hold. Procedural Guidelines (PG) are designed to provide more detailed guidance for consideration by business appraisers than found in the base standards themselves. The value of the underlying enterprise or asset, if applicable.

Dividends 52

Dividends Appraisal Terminal Value Marketability 52

Chris Mercer

NOVEMBER 15, 2022

I have heard many appraisers suggest that one should not normalize owner compensation when valuing minority interests “because the minority shareholder cannot change compensation.” Otherwise, the appraiser is not valuing the appropriate asset. The present value based on these assumptions is $11.65

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Appraisal 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. based on the marketable minority value of $18 million.

Marketability 52

Marketability Appraisal Business Valuation Dividends 52

Chris Mercer

MARCH 8, 2023

Fair Market Value Defined Fair market value occurs at the intersection of hypothetical negotiations between hypothetical willing, knowledgeable and able buyers and sellers. Therefore, in every fair market value determination prepared by business appraisers, it is critical that both buyers and sellers are present for the negotiation.

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Chris Mercer

AUGUST 1, 2022

The median market value of equity (MVE) for dividend-paying stocks was $133 million, and the average MVE was $248 million. There is no information in any restricted stock study to help business appraisers estimate the value of expected future dividends. This is just common sense. Refer to the initial figure.

Dividends 52

Dividends Appraisal Marketability Start-ups 52