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. There is a rebuttable presumption under the Notice, however, that such exception does not apply.

Fair Market Value 52

Fair Market Value Marketability Treasury Dividends 52

Chris Mercer

MARCH 7, 2024

Expected economic benefits associated with the subject interest, which come from interim benefits (dividends or distributions) and a terminal cash flow when the investment is sold or liquidated. Interest-level benefits may be affected by such factors as: (1) The history of dividends or distributions, including both timing and amounts. (2)

Dividends 52

Dividends Appraisal Terminal Value Marketability 52

Chris Mercer

FEBRUARY 23, 2024

The interest in Company A has a high dividend yield and slow expected growth (Lines 9 to 13). The interest in Company B has a much lower dividend yield and much higher expected growth. Note that the combined dividend yield (3%) and expected growth (9%) total 12%, or less than the discount rate for Company B of 13%.

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Chris Mercer

APRIL 7, 2023

My most recent post, titled Fair Market Value and the Nonexistent Marketability Discount , generated quite a discussion when posted on LinkedIn. The post provided a solid rationale that there is no such thing as a marketability discount for controlling interests of companies. ” (emphasis in original) (pp.

Marketability 52

Marketability Fair Market Value Appraisal EBITDA 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