For a business appraiser, it doesn’t get any better than this Court of Appeals language
The husband owned a minority (25%) interest in an oil and gas holding company, which his expert valued using the build-up method and a discount rate derived from Ibbotson. During deposition, the wife’s attorney questioned the expert’s methodology, and asked who was a top authority in the field. When the expert cited Gary Trugman, the [...]
Retail sales per square foot benchmarks from Bizminer
Jon Brandow, CEO of Bizminer, ran some reports on 2009 sales per square foot for us–a good industry rule of thumb benchmark. Here’s what he found: Bizminer Retail Revenue per Square Foot
New case study for calculating DLOM using FMV Restricted Stock Study
BVR has added a new case study that offers step-by-step guidance when using the FMV Restricted Stock Study to calculate an effective and supportable discount for lack of marketability. This new case study joins the other free DLOM resources, including BVR’s FMV Companion Guide, available at BVMarketdata.com. The new free case study includes: background information [...]
Mercer Capital (and QMDM) wins discounts in new FLP case
Following on the heels of the pro-taxpayer decision in Estate of Black v. Comm’r (see last week’s BVWire™), comes another taxpayer victory in the Estate of Shurtz v. Comm’r (T.C. Memo, Jan. 2010). The “win” was based on a well-planned, well-managed family limited partnership (FLP), essentially funded with 750 acres of prime Mississippi timberland plus [...]
Estate and gift tax valuations: insights from inside the IRS
In the past three years, we’ve seen an average of 5 to 7 new family limited partnership (FLP) cases per year, primarily in the estate tax context but also the gift tax and even the state tax and divorce arena. We’ve also seen increased IRS oversight of appraisers in particular and tax preparers in general—for [...]
Toyota offers appraisers a chance to watch beta change in “real time”
Toyota Motor Company’s recent safety concerns present an extraordinary chance to see how betas and cost of capital change, comments Pete Butler. ”This has been a rather quick and precipitous fall from grace, but it is also a testament to how quickly goodwill and an impeccable reputation can evaporate,” Pete points out. Looking at the market [...]
Pursel offers some conclusions on control premia after testing many variables
In an extensive study on control premia coming out in the new March BVU this week, Brad Pursel offers the following conclusions: Control premiums are a significant input in many valuation engagements and are often featured prominently in assessing the reasonableness of an offer to acquire a public company. Significant data now exists that a [...]
Estate & Gift tax valuations with Trugman, Fishman, and Treharne
Linda Trugman, Jay Fishman, and Chris Treharne join BVR for their 100-minute teleconference, “Valuation Issues in Estate & Gift Tax” on March 4. Jay has just returned from meeting with the IRS and will share his insights on preparer penalties, concerns about limitations (or elimination) on DLOM, and other topics. There’s also news on the [...]
Cindy Collier joins HSSK
Cindy has moved her practice from Healthcare Valuation Solutions, of which she was the CEO and Founder, to HSSK, where she takes over the position held by Don Barbo as Managing Director of Healthcare Valuation. Among Cindy’s many accomplishments, she’s the co-editor with Mark Dietrich of BVR’s Guide to Healthcare Valuation, 2009 Edition–which makes her [...]
ASA decides not to merge with RICS
The ASA Board of Governors rejected a much discussed but somewhat nonsensical (from a BV perspective) merger with the Royal Institute of Chartered Surveyors (RICS) at their meeting three weeks ago. Or, to quote our friend John Barton, chair of the BVC of the ASA, “while such a merger may have had some benefits for [...]
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