Appraisal Review #2: Before the Definition

An Examination Through the Lens of Appraisal Review

In a post last week, I wrote about appraisal review, indicating that this important topic would be a new focus for  In that post, I addressed appraisal review, not as something mechanical that appraisers do, but much more broadly.  With this post, we begin to look at the standard of value of fair market value through the lens of appraisal review.

Restricted Stock Benchmarkers Beware

Benchmark Analysis Will Not Work for Even a Single Asset Holding Company

This post puts benchmarking analysis using averages of restricted stock studies to determine marketability discounts to the test and the test is failed. If cannot work for even a simple, single asset holding company interest. Read the post and you will not employ simple benchmark analysis again. The post is necessarily long. Print it off or bookmark it when you have time to read it and think about its implications.

Valuation Question From BV Resources

Minority Interest (Lack of Control) Discount

A question was posed in a recent issue of Business Valuation Update from BV Resources. Paraphrasing, if all shareholders are minority, should there be a discount for lack of control (from the marketable minority level)? The broader question is, whether all shareholders are minority or there is a controlling shareholder, should there be a discount for lack of control (from the marketable minority level)? The answer is the same as we conclude in this post.

Analyzing the BV Resources 2021 DLOM Survey

What Does it Mean for Appraisers Today?

BV Resources recently published a DLOM Survey. It had 10 questions and 202 responders. This post looks at several of the questions to infer the current state of the art in valuation regarding DLOMs. The post is longer than most but is worth your investment of time to read it and hopefully comment since the issue is key in all valuations of illiquid minority interests of companies.

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

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

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.

The Timing is Right for Large Gifts in Light of Pandemic-Induced Lower Equity Values

The COVID-19 pandemic has created, what is hopefully, a short-term opportunity to take advantage of resulting lower equity values to maximize the benefit of significant gifting transactions. Take advantage of the opportunity while it is here. When it is too late, it will be too late.

What is a Qualified Appraisal for Charitable Gifting Purposes?

Who is a Qualified Appraiser? What is Form 8283?

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.