This post recalls an appraisal review assignment of mine from many years ago. After the last seven posts where we have talked specifically about appraisal review from a broad perspective, it is appropriate to discuss one specific case where appraisal review was key to arriving at a settlement to a bitterly fought buy-sell agreement dispute.
What are the implications from this discussion of differences between the marketable minority and nonmarketable minority levels of value? There are at least two. Read more in this week’s post focusing on the nonmarketable minority level of value.
From December 15, 2019 until now, it has been just over two years. I’ve been walking with intentionality these past two years. Miles, 4,552. Steps, 9.6 million. Health, as far as I know, is better. Attitude, much better. This post recaps the experience of the last two years and offers a few thoughts that I hope you find either interesting, helpful or both.
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.
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.
Now is an excellent time for closely held and family business boards to consider engaging in leveraged transactions to enhance shareholder liquidity and accelerate shareholder returns. The Biden Administration has not yet increased corporate or personal tax rates and interest rates are still low. Banks are seeking quality loans and your leveraged transaction might fit their bill. And perhaps your shareholders desire some liquidity from their ownership, even if you are not ready to don’t desire to sell your company.
In this post, two corporate finance tools available to owners of closely held and family businesses are discussed at length: Leveraged Dividend Recapitalizations and Leveraged Share Repurchases. These tools can be used to create liquidity outside the ownership of private businesses or interests in them.
Walking or moving, on a daily basis, has been a topic I’ve written about a number of times on this blog. My walking streak will hit 450 days today. In this post, I talk about why you should implement a walking routine and strategies to keep your program going.
This post recounts a few thoughts that have come to mind regarding 407 days of walking five miles (10,000 Steps) or more each day.
Two readers of this blog provided good comments to my last post, #4 – The Myth of the 25% – 45% “Typical” Range of Restricted Stock Discounts Must Die. The discussion that these comments began is important for appraisers, so their comments and my responses constitute this fifth post in the series on restricted stock studies and discounts.
The valuation lore with many valuation analysts who cite “the restricted stock studies” (and seldom much more) is that the “typical” range of restricted stock discounts is from about 25% to 45%, with an average of about 35%. This post addresses, and hopefully kills, this myth.
