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

Chris Mercer

Equity interests in a business enterprise are not necessarily worth the pro rata share of the business enterprise interest value as a whole. Also, the value of the business enterprise is not necessarily a direct mathematical extension of the value of the fractional interests.

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USPAP Standards Rule 9-4 Creates a Problem for Business Appraisers

Chris Mercer

The factor is not “sales of capital stock or other ownership interest in similar business enterprises.” ” The other business interest could be privately owned or publicly traded based on this guidance. There are seven specific factors in USPAP in both the 2005 and 2006 editions. Holding period (i.e.,

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S corp vs C corp vs LLC: What’s the difference, and which one is better for your business?

ThomsonReuters

Many entrepreneurs wonder what types of business ownerships are possible and how to determine which one is right for their business. The following is a guide to the most common questions prospective business owners have about how to structure a business enterprise in the United States.

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No Marketability Discounts or Discounts for Illiquidity for Controlling Interests of Companies

Chris Mercer

“The price achievable in a private sale of the entire closely held business enterprise.” 458) If a company achieves a price in a private sale of the entire business, That is the price and value of the business. And see both of the levels of value charts in Pratt’s Sixth Edition (at p. ” (p. ” (p.