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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. The only mention of dividends in the Professional Standards is in a list of factors from Revenue Ruling 59-60. This is not a criticism of either set of standards.

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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. XYZ Company (100% of equity). No such discount is reflected on either chart. ” (p.