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

Cooley M&A

JANUARY 19, 2023

The Excise Tax generally applies to the fair market value of stock repurchased in a taxable year, net of the fair market value of stock issued in the same taxable year, with certain modifications. because SPAC sponsor shares are forfeited and not entitled to receive any distributions upon liquidation).

Fair Market Value 52

Fair Market Value Marketability Treasury Dividends 52

Chris Mercer

MARCH 7, 2024

My current series of blog posts is titled “Mercer’s Musings.” The beginning point of the valuation of a partial ownership interest is almost always the value of the underlying business or asset. This is the “base value” that has been addressed in a number of posts on this blog.

Dividends 52

Dividends Appraisal Terminal Value Marketability 52

Chris Mercer

FEBRUARY 23, 2024

My conclusion is that the various restricted stock studies are inadequate to meet current business valuation standards and that they should not be used as a basis for “guessing” the magnitude of marketability discounts for illiquid interests of closely held businesses. The interests differ significantly from that point on.

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Appraisal Rights

APRIL 9, 2019

This includes reviewing business information and assessing equity risk in order to produce a value conclusion addressing those risk factors. Valuation discounts are essentially the difference between fair value and fair market value. Declare/pay shareholder dividends. Influence and control the board.

Business Valuation 40

Business Valuation Dividends Fair Market Value Equity 40

Appraisal Rights

APRIL 9, 2020

Further, while the statute defines “fair value” to eliminate the marketability and minority discounts typically associated with “fair market value” valuations, courts in Illinois have found that “fair market value” is a relevant factor to be considered when determining “fair value.”

Appraisal 52

Appraisal Fair Market Value Book Value Dividends 52

ThomsonReuters

JULY 7, 2022

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. Basis in virtual currency is the Fair Market Value (FMV) of the currency on the date it is received.

Start-ups 98

Start-ups Dividends Fair Market Value Equity 98