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Mercer’s Musings #4: Factors to Consider in Valuing Partial Ownership Interests

Chris Mercer

My current series of blog posts is titled “Mercer’s Musings.” This is the “base value” that has been addressed in a number of posts on this blog. The emerging attractiveness of the entity for equity offering, sale, merger or acquisition. 3) Preferential dividend claims. (4)

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Mercer’s Musings #2: Using Restricted Stock Studies to Support Marketability Discounts

Chris Mercer

If you disagree with this rather strong statement, feel free to comment on this blog with your rationale for such relevance. Company A’s annual dividend for the 10% interest is $100,000, which provides a 10% expected dividend yield based on the MM/FC value of the interest. greater than the comparable interest in Company A.

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Ambiguous Agreement, Clear Consequences

Farrel Fritz

This first post of 2024 brings the New York Business Divorce Blog into its eighteenth calendar year of weekly commentary on disputes among co-owners of closely held businesses. If the company feels It does not need the second $50,000, the company has the right to do so and my equity will be diluted accordingly. By Melwani or Cantal?

Equity 59
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Guest Post: Properly Applying Valuation Discounts in a Business Divorce

Appraisal Rights

The business valuator must carefully scrutinize the characteristics in the interest being valued to determine stakeholder equity. This includes reviewing business information and assessing equity risk in order to produce a value conclusion addressing those risk factors. Declare/pay shareholder dividends. Sell the entity.

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Mercer’s Musings #1: USPAP and the Internal Revenue Service

Chris Mercer

” In this blog and with this post, I reintroduce “Mercer’s Musings” because I would like to reflect on a number of seemingly unsettled issues in the business valuation world. Equity interests in a business enterprise are not necessarily worth the pro rata share of the business enterprise interest value as a whole.

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Data Update 2 for 2021: The Price of Risk!

Musings on Markets

With equities, the metric that has been in use the longest is the PE ratio, modified in recent years to the CAPE, where earnings are normalized (by averaging over time) and sometimes adjusted for inflation. Estimation Approaches Why is it so difficult to estimate an equity risk premium?

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10 midyear tax planning moves

ThomsonReuters

Gains from the sale of an investment held for more than one year (as well as dividends on certain stocks) are generally taxed at preferential capital gains rates. Dividends from any gifted stock also may qualify for the lower rate. 2—Take advantage of lower tax rates on investment income.