“Standard of Value” is defined in the Glossary of the ASA Business Valuation Standards as: Standard of Value. The identification of the type of value being used in a specific engagement; e.g. fair market value, fair value, investment value. Defining the appropriate standard of value is a critical first step in every business valuation engagement. […]
Estate of Shurtz (T.C. Memo 2010-21) was filed in February 2010, or almost two years ago. On February 24, 2010, the BV Wire, published by Business Valuation Resources, reported on the case in a short article entitled “Mercer Capital (and QMDM) wins discounts in new FLP case.” Background According to the decision, written by Judge Jacobs, […]
The following question was recently posed in the Valuation Group (of which I am a member) on LinkedIn: Can a discount rate applicable to net cash flow to equity be applied to net income based solely on the assumption that over the long-run, net income and cash flow should be the same? Someone I know wants to […]
What is the meaning of fair value in statutory determinations in Iowa? Well, apparently, it depends, as we learn in Rolfe State Bank v. Gunderson et al (No. 09-0651, Filed February 11, 2011) Rolfe State Bank, an Iowa chartered state bank in Rolfe, Iowa was substantially owned by Dixon Bancshares, Inc. During 2008, the board […]
The following question arrived through LinkedIn the other day: I read today in e-article that there’s is a Mercer Model for Pass Through Entities? We have almost every book you’ve written but were unable to find it. I called Mercer Capital and talked to Lisa, she said there is no such model.. I am aware […]
DeMatteo Salvage Company, Inc. is a Long Island based, family-owned business since the 1920s, designing and installing machinery and equipment for scrap paper and solid waste customers. The company had multiple owners who, in this case, were brothers. DeMatteo Salvage also had a buy-sell agreement which dated back to 1966. It was a fixed-price agreement, […]
The Kentucky Supreme Court recently addressed the state’s law providing shareholders the right to dissent from certain significant corporation actions and to obtain the fair value of their shares. The case, Shawnee Telecom Resources, Inc. v. Kathy Brown, provides a number of interesting insights into the evolution of statutory fair value in the various states, […]
Jay E. Link is the son of John (Jack) Link and the brother of Troy Link. Jack and Troy ousted Jay from the family business, Link Holding, Inc., L.S.I., Inc., Linked Snacks, etc. (“LSI” or “the Company”) they collectively owned in 2005. A Buy-Sell Agreement There was a buy-sell agreement, which, among other things, granted the […]
In 2011, ValuationSpeak was introduced as my personal blog. My first post was written on January 10, 2011. Since then, we published in 13 categories, as summarized below: As noted in the chart above, two major themes dominated ValuationSpeak in 2011: buy-sell agreements and statutory fair value. Buy-Sell Agreements. We wrote a great deal about buy-sell agreements. My […]
Thanks for your readership in 2011. We, like many others this time of year, took some time to look back over the year. The 5 most popular posts for the year were: Rights of First Refusal and Buy-Sell Agreements Statutory Fair Value: #2 Discounted Cash Flow (DCF) Method Damages in a Hypothetical Breach of Contract […]