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.
If you’re a wealthy American who’s planning to hire an estate or trust attorney later this year, here’s a thought: Good luck. You’re going to need it.
In two recent posts (here and here) I talked about the value of Facebook shares at the time of and following the IPO on May 18, 2012. As is well-known at this time, Facebook’s IPO price was $38 per share, which valued its 2.7 billion shares outstanding at $104.2 billion. I did a fairly simple […]
Q: Isn’t a valuation process agreement just a fixed price buy-sell agreement that is updated every year? Answer: The question is a good one. And the answer is “no” and “yes.” “No.” A buy-sell valuation process agreement specifies just that – a valuation process to determine value. The price is determined by appraisal. It […]
In yesterday’s post, I reported, like so many others, that the Facebook IPO is in trouble. The IPO price was $38.00 per share, which valued Facebook at $104 billion. Yesterday’s post reported that Mark Hulbert had discussed a reasonable valuation of Facebook. In the post I said: If Google’s P/E is 18x and Facebook’s earnings […]
As almost everyone on the planet knows by now, Facebook went public on Friday, May 18, 2012. The IPO price was $38.00 per share, placing an enterprise value on the company of $104 billion. It closed at the end of the day at $38.37 per share. There was no room for the upside in the […]
Two speakers at the recent Business Valuation Conference of the New York State Society of CPAs (May 21, 2012) addressed the topic of shareholder litigation in New York related to determinations of statutory fair value. At the outset of this post, let me say, as I have said many times before, I am not a lawyer. […]
During calendar 2012, individuals can gift, or give away, as much as $5.12 million and pay no federal gift taxes on the gifts, although this amount is reduced by the amount of any taxable gifts made in prior years. In the absence of a Congressional change in the law, however, the gift tax exemption will […]
Promissory notes are used as a funding mechanism in many buy-sell agreements. The topic is discussed in my book, Buy-Sell Agreements for Closely Held and Family Business Owners. In a recent blog post, Shareholder (Promissory) Notes in Buy-Sell Agreements, we addressed the topic in even more detail. Two appraisals (two separate years) prepared by Mercer Capital […]