A Quirk with Third Appraisers in Buy-Sell Agreement Valuation Processes

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The role of the third appraiser is always to bring resolution to buy-sell agreement valuation processes. The question is how the third appraiser’s conclusion will be used to bring pricing resolution. In this post we see that one “typical” way of considering the third appraiser’s conclusion has in interesting and potentially dangerous twist for valuation processes.

The Buy-Sell Agreement That Might Never End

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Recently, I was involved, for a moment, in a buy-sell agreement valuation process that had many issues. A key executive in a company was terminated. He owned about 15% of a profitable operating company, and his firing triggered the company’s buy-sell agreement provisions in its operating agreement. This was a buy-sell agreement that was virtually destined to fail unless the parties agreed to a change in the process.

New York Supreme (Trial) Court: One Buy-Sell Agreement That’s So Broke It Likely Can’t be Fixed

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Buy-sell agreements can go bad if all parties to them do not pay attention to their terms before signing them. This is particularly true in the New York case of Yakuel v Gluck, which was filed in early May in the Supreme Court of New York County.

11 Things to Know about Fixing “Problems” in Your Business

And #12: Problem Resolution Has a Positive Impact on Business Value

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I was reflecting about business problems and my experience in seeing them addressed in other organizations or in dealing with them in our own company. This post provides 11 observations on why it is critical to address business problems timely and credibly. The value of your business is directly influenced by how you resolve problems as they arise. Think of a problem identified as an opportunity for constructive change.

What is the Impact of the COVID-19 Crisis on Marketability Discounts (DLOMs)?

Will Your Marketability Discount Analysis Allow You to Address the Question?

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My virtual session today at the New York Society of Certified Public Accountants’ Business Valuation Conference addressed the issue of marketability discounts. A question was raised about how the Quantitative Marketability Discount Model (QMDM) could be used to address the impact on DLOMS of the COVID-19 pandemic. Today’s post addresses this important question.

What is a Qualified Appraisal for Charitable Gifting Purposes?

Who is a Qualified Appraiser? What is Form 8283?

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If you even occasionally sign a Form 8283 for a donor/client who has made a gift of closely held business interests, it is probably a good idea to know what you are signing. This post provides an overview of the “rules” of the charitable gifting game from an appraiser’s perspective.

Two Tales of Recent Valuation Tangles with the IRS

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This Valuation Video recounts two recent disputes over gift/estate tax appraisals with the Internal Revenue Service. In one case, Mercer prepared the original appraisal, which was challenged. In the second matter, Mercer was called to prepare an appraisal for Tax Court because of the unavailability of the original appraiser. You won’t read about either of them anywhere else because they settled quietly and favorably for the taxpayers.

Fair Market Value: A Picture is Worth a Thousand Words

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I spoke earlier this week at the Pennsylvania Institute of Certified Public Accountants in King of Prussia, PA. After getting somewhat lost in the King of Prussia Mall, the largest mall by number of stores in America, I talked about simplifying complex valuation concepts for judges and juries and also about buy-sell agreements. This Valuation Video tackles one of my topics, the adage about a picture being worth a lot of words when talking about Fair Market Value.

Bank Valuation Concepts Can Influence How You Think and How You Lead

Recap from the Best Banks in America Super Conference

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How can you use bank valuation concepts to influence how you think and how you lead? That’s the question that I asked in a recent session at the Best Banks in America Super Conference put on by the Emmerich Group in Minneapolis. In this video, I discuss how basic concepts of valuation can help us think about how we look at banks and how we lead when we manage those banks.