In this second post, Chris Mercer dives deeper into the Citigroup / Morgan Stanley buy-sell agreement outcome. If these results can happen to Citigroup and Morgan Stanley, they can certainly happen to you.
Overview of a Two Part Series Morgan Stanley and Citigroup entered into a joint venture (JV) dated as of May 31, 2009, with Morgan Stanley owning 51% and Citigroup owning the remaining 49% of the common member interests in Morgan Stanley Smith Barney Holdings LLC (“MSSBH”). The JV was evidenced by the Amended and Restated […]
A good explanation of the “Single Appraiser: Select Now, Value Now” recommendation from my book Buy-Sell Agreements for Closely Held and Family Business Owners was recently featured in NACVA’s email newsletter. Read it here (also includes a link to the original article on Mercer Capital’s website further explaining this buy-sell agreement recommendation).
According to recent news reports, FedEx might lose its contract with the U.S. Postal Service. Does that affect FedEx’s value? What effect does customer concentration have on a private company’s value?
Most real estate appraisers shy away from valuing equity interests such as LLC minority interests.
In my experience, life insurance policies specify who the beneficiary will be. It is critical that the buy-sell agreement specify clearly how the proceeds should be treated.
This series, “Ask Chris Mercer,” is derived from the Q&A session of the May 16, 2012 webinar, “Buy-Sell Agreements” sponsored by WealthCounsel and attended by over 600.
Promissory notes are used as a funding mechanism in many buy-sell agreements.
Buy-sell agreements are helpful and used in every industry where different owners have potentially divergent desires and needs – and that includes every industry I have seen to date. Companies that most need and most frequently employ buy-sell agreements tend to share common characteristics
Some time ago, an attorney called saying he was in the midst of a negotiation with the Internal Revenue Service regarding the enterprise value of a business. The company was in a cyclical industry and the appraiser had used a ten year analysis of historical earnings in developing his estimate of earning power for capitalization. […]
