Business Valuation Articles
Fair ValueTM is Banister Financial's newsletter, providing detailed analysis and discussion of important and timely business valuation methods and issues. Selected articles from past issues are listed below, along with other published articles authored by Banister professionals.
These business valuation articles are abbreviated discussions of complex topics and do not constitute advice to be applied to any specific situation. No valuation, tax or legal advice is provided herein. Additionally, valuation cases, IRS rulings, and valuation methodologies can change materially over time, including from when a specific article was written, and may no longer be valid. Readers of these articles should seek the services of a skilled and trained professional.
Accounting Fraud- How Considered in a Business Valuation
The Business Appraiser's Role Where Company Accounting Fraud is Alleged in Valuation Disputes
Active vs. Passive Appreciation in Business Valuation for Divorce
Active-Passive Appreciation in Business Valuation in Divorces- The Same Old Inflation Argument- But is it Valid?
Regression Analysis in Business Valuation Engagements- Using statistical techniques on the issue of active-passive appreciation in divorce valuations, as well as business valuations in general.
Automobile Dealership Business Valuations
Auto Dealership Values: A Key Time for Wealth Maximization and Planning
Blockage Discounts for Valuation Purposes
Blockage Discounts for Publicly Traded Stock
Built-in Capital Gains Tax Discounts and Impact on Business Valuation
Discounting for Built-in Capital Gains in LLCs, Partnerships, and S Corporations
Dunn Court Allows Discount for Built-In Gains- Hope for Estate Planning (And Avoiding Inequitable Outcomes in Equitable Distribution)
Valuation Discounts for Potential Capital Gains: How Much is Enough?
Business Valuation Approaches, Methods and Techniques
A Declaration of Independence
Are Smaller Companies More Risky? The Small Stock Return Debate
Back to the Future! - This article takes at the incorrect use of after the fact data to determine a value of a business at an earlier date.
Back to the Future!- Part II - This article takes a look at what court cases say about the use of after the fact data in valuations.
Daubert, We Hardly Knew Ye
Excess Earnings Valuation Method: Is It Time to Put it Out to Pasture in Divorce Valuation Cases?
Identifying and Excluding Faulty Valuation Report Content and Testimony
In Defense of the Merged and Acquired Companies Valuation Method
Kick the Habit: The Excess Earnings Method Must Go
The Justification of Purchase Test: Is it Always Justified? (i.e., Does The Sanity Check Always Produce a “Sane” Result?)
The Most Common Sins in Faulty Valuations
The Top 10 Errors Made Using the Merged and Acquired Companies Valuation Method
Why Time Travel in Business Valuation is Wrong
Buy-Sell and Shareholder Agreements and Considerations in Business Valuation
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value?
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value? Part II- The Courts
Company Business and Financial Analysis in Business Valuation Assignments
Company Business Risk and Its Impact on Valuation (and Why Attorneys Must Understand It)
Company Financial Risk and its Impact on Valuation (and Why Attorneys Must Understand It)
Comparable Public and Acquired Company Analysis for Use in Business Valuation
Public and Private Company Business Valuation Differences
How Comparable Are Your Public Company Business Valuation Comparables?
Market Influences on Business Valuation
What Does Industry Consolidation Mean for Your Company's Value?
Control vs. Minority Issues and Impact in Business Valuation
Premium for Voting Stock in Simplot- A Reflection of the Real World?
Attorneys Breathe a Sigh of Relief: Simplot Tax Court Ruling Overturned
If You Can't Come Through the Family Attribution Front Door, Try the Back: The IRS Swing Block Position for Valuations
Dividends and Impact on Business Valuation of Minority Interests
Minority Shares: Dividends and Their Crucial Impact on Value (And Why Even 45% Discounts for Lack of Marketability Can Be Reasonable)
Employee Stock Ownership Plan (ESOPs) Business Valuation Issues
Employee Stock Ownership Plans (Structuring and Valuation Issues)
ESOPs and S Corporations
Estate and Gift Tax Issues with Business Valuation Ramifications
Defusing the Gift Tax Valuation Time Bomb: New Adequate Disclosure Rules
Dunn Court Allows Discount for Built-In Gains- Hope for Estate Planning (And Avoiding Inequitable Outcomes in Equitable Distribution)
Preferred Stock Recapitalization- Exchanging Common for Preferred Shares to Accomplish Estate Planning Goals
Proposed IRS Valuation Guidelines: 1 + 1 = 3 (Which May Be Right)
Revenue Ruling 59-60: Still Valid or Just Dusty With Age?
Valuation Discounts- Can You Explain Yours? The New IRS Form Requirements for Gifts of Shares
Valuation Discounts for Potential Capital Gains: How Much is Enough?
Voting/Non-Voting Recapitalizations in Subchapter S Corporations- The Business Valuation Impacts for Estate and Gift Planning
Family Law Related Business Valuation Issues
A Sampling of Valuation Cross-Examination Questions
Dunn Court Allows Discount for Built-In Gains- Hope for Estate Planning (And Avoiding Inequitable Outcomes in Equitable Distribution)
Excess Earnings Valuation Method: Is It Time to Put it Out to Pasture in Divorce Valuation Cases?
Hambsters- NC thinks businesses that cannot be sold have value in the context of a divorce- more follow-up on the Namby Pamby Hamby article.
These business valuation articles are abbreviated discussions of complex topics and do not constitute advice to be applied to any specific situation. No valuation, tax or legal advice is provided herein. Additionally, valuation cases, IRS rulings, and valuation methodologies can change materially over time, including from when a specific article was written, and may no longer be valid. Readers of these articles should seek the services of a skilled and trained professional.
Accounting Fraud- How Considered in a Business Valuation
The Business Appraiser's Role Where Company Accounting Fraud is Alleged in Valuation Disputes
Active vs. Passive Appreciation in Business Valuation for Divorce
Active-Passive Appreciation in Business Valuation in Divorces- The Same Old Inflation Argument- But is it Valid?
Regression Analysis in Business Valuation Engagements- Using statistical techniques on the issue of active-passive appreciation in divorce valuations, as well as business valuations in general.
Automobile Dealership Business Valuations
Auto Dealership Values: A Key Time for Wealth Maximization and Planning
Blockage Discounts for Valuation Purposes
Blockage Discounts for Publicly Traded Stock
Built-in Capital Gains Tax Discounts and Impact on Business Valuation
Discounting for Built-in Capital Gains in LLCs, Partnerships, and S Corporations
Dunn Court Allows Discount for Built-In Gains- Hope for Estate Planning (And Avoiding Inequitable Outcomes in Equitable Distribution)
Valuation Discounts for Potential Capital Gains: How Much is Enough?
Business Valuation Approaches, Methods and Techniques
A Declaration of Independence
Are Smaller Companies More Risky? The Small Stock Return Debate
Back to the Future! - This article takes at the incorrect use of after the fact data to determine a value of a business at an earlier date.
Back to the Future!- Part II - This article takes a look at what court cases say about the use of after the fact data in valuations.
Daubert, We Hardly Knew Ye
Excess Earnings Valuation Method: Is It Time to Put it Out to Pasture in Divorce Valuation Cases?
Identifying and Excluding Faulty Valuation Report Content and Testimony
In Defense of the Merged and Acquired Companies Valuation Method
Kick the Habit: The Excess Earnings Method Must Go
The Justification of Purchase Test: Is it Always Justified? (i.e., Does The Sanity Check Always Produce a “Sane” Result?)
The Most Common Sins in Faulty Valuations
The Top 10 Errors Made Using the Merged and Acquired Companies Valuation Method
Why Time Travel in Business Valuation is Wrong
Buy-Sell and Shareholder Agreements and Considerations in Business Valuation
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value?
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value? Part II- The Courts
Company Business and Financial Analysis in Business Valuation Assignments
Company Business Risk and Its Impact on Valuation (and Why Attorneys Must Understand It)
Company Financial Risk and its Impact on Valuation (and Why Attorneys Must Understand It)
Comparable Public and Acquired Company Analysis for Use in Business Valuation
Public and Private Company Business Valuation Differences
How Comparable Are Your Public Company Business Valuation Comparables?
Market Influences on Business Valuation
What Does Industry Consolidation Mean for Your Company's Value?
Control vs. Minority Issues and Impact in Business Valuation
Premium for Voting Stock in Simplot- A Reflection of the Real World?
Attorneys Breathe a Sigh of Relief: Simplot Tax Court Ruling Overturned
If You Can't Come Through the Family Attribution Front Door, Try the Back: The IRS Swing Block Position for Valuations
Dividends and Impact on Business Valuation of Minority Interests
Minority Shares: Dividends and Their Crucial Impact on Value (And Why Even 45% Discounts for Lack of Marketability Can Be Reasonable)
Employee Stock Ownership Plan (ESOPs) Business Valuation Issues
Employee Stock Ownership Plans (Structuring and Valuation Issues)
ESOPs and S Corporations
Estate and Gift Tax Issues with Business Valuation Ramifications
Defusing the Gift Tax Valuation Time Bomb: New Adequate Disclosure Rules
Dunn Court Allows Discount for Built-In Gains- Hope for Estate Planning (And Avoiding Inequitable Outcomes in Equitable Distribution)
Preferred Stock Recapitalization- Exchanging Common for Preferred Shares to Accomplish Estate Planning Goals
Proposed IRS Valuation Guidelines: 1 + 1 = 3 (Which May Be Right)
Revenue Ruling 59-60: Still Valid or Just Dusty With Age?
Valuation Discounts- Can You Explain Yours? The New IRS Form Requirements for Gifts of Shares
Valuation Discounts for Potential Capital Gains: How Much is Enough?
Voting/Non-Voting Recapitalizations in Subchapter S Corporations- The Business Valuation Impacts for Estate and Gift Planning
Family Law Related Business Valuation Issues
A Sampling of Valuation Cross-Examination Questions
Dunn Court Allows Discount for Built-In Gains- Hope for Estate Planning (And Avoiding Inequitable Outcomes in Equitable Distribution)
Excess Earnings Valuation Method: Is It Time to Put it Out to Pasture in Divorce Valuation Cases?
Hambsters- NC thinks businesses that cannot be sold have value in the context of a divorce- more follow-up on the Namby Pamby Hamby article.
A Fountain Run Dry - The North Carolina Court of Appeals reaches a faulty decision on valuing stock options for divorce in North Carolina that flies in the face of widely accepted real world methodologies in how options are really bought and sold. The result is a grossly unfair outcome to the ex-spouse not holding the options.
Identical Twins (But Not in Equitable Distribution)
Identifying and Excluding Faulty Valuation Report Content and Testimony
Kick the Habit: The Excess Earnings Method Must Go
Namby Pamby Hamby - The North Carolina Appeals Court case that turns reason upside down in valuation for divorce- businesses that cannot be sold nonetheless have value in the context of a divorce.
Family Limited Partnerships and LLCs- Valuation of and Issues on Valuation Discounts
Family Limited Partnerships with Marketable Securities: Their Valuation
Family Limited Partnerships with Real Estate: Are Valuation Discounts Always Appropriate?
Fractional Interests in Real Estate- Valuation Issues
Fractional Interests in Real Estate: Their Valuation (Why the Parts are Not Worth Their Share of the Whole)
Income Valuation Approach and its Use in Business Valuation
The Income Valuation Approach
Understanding the Income Valuation Approach: A Primer For Judges Who Must Regularly Hear Business Valuation Cases
Critically Assessing a Capitalization Rate: Is it Reasonable?
Industry Consolidation and the Impact on Business Value
What Does Industry Consolidation Mean for Your Company's Value?
Jointly Retained Business Valuations
Jointly Retained Business Valuations in Disputes- Steps Necessary to Make the Process Works
Selecting the Right Business Appraiser for a Jointly Retained Business Valuation Need
What Should be in Report in a Jointly Retained Valuation for a Dispute
Management Interview in a Business Valuation Assignment
The Effective Valuation Interview
Marketability Discounts in Business Valuation
Discounts for Lack of Marketability: A Review of Studies and Factors to be Considered
Mandelbaum Case Raises the Bar in Supporting Business Valuation Discounts in Tax Court
Marketability Discounts: Is New Really Better? - There is a move by some to use mathematical models to quantify marketability discounts. This article considers those models and whether or not they are really superior to discount studies.
Selling Out to a Public Company: Blockage, Restricted Shares, and Value
The 35% "Standard" Marketability Discount: RIP
Merger/Acquisition Method in Business Valuation
In Defense of the Merged and Acquired Companies Valuation Method
The Top 10 Errors Made Using the Merged and Acquired Companies Valuation Method
Professional License Valuation
License Valuation Revisited - A hypothetical, humorous valuation of the driver's license of stock car driver Jeff Gordon for his divorce.
Professional License Valuation Voodoo: Junk Science in a Family Law Context
Professional Practice Business Valuations and Issues
Medical Practice Sales to Hospitals: A Business Valuation Minefield, Part 1
Medical Practice Sales to Hospitals: A Business Valuation Minefield, Part 2
Medical Practice Sales to Hospitals: A Business Valuation Minefield, Part 3
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value?
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value? Part II- The Courts
S Corporation Business Valuation Issues
A Gross Result in the Gross Case: All Your Prior S Corporation Valuations Are Invalid
ESOPs and S Corporations
S Corporation (and LLC) Added Value (Fair Value, Fall 2009)- If you've read the other articles here on this issue, this article brings the issue up to its Fall 2009 status, which is much changed, along with a discussion of some of the valuation methods and studies related to S corporation valuation.
Some Observations on Tax Affecting
Voting, Non-Voting Recapitalizations in S Corporations
Selling the Family Business
The Key Steps Involved in Successfully Selling the Closely Held Business
Selecting a Business Valuation Firm That Can Also Sell Your Business
Preparing a Company for Sale. Obtaining the Best Price
Stock Option Valuation Methods and Issues
A Fountain Run Dry - The North Carolina Court of Appeals reaches a faulty decision on valuing stock options for divorce in North Carolina that flies in the face of widely accepted real world methodologies in how options are really bought and sold.
Stock Option Valuation Explained for Divorce and Estate Planning Attorneys
Valuation Issues- Other
Key Valuation Trends and Their Importance
Identical Twins (But Not in Equitable Distribution)
Identifying and Excluding Faulty Valuation Report Content and Testimony
Kick the Habit: The Excess Earnings Method Must Go
Namby Pamby Hamby - The North Carolina Appeals Court case that turns reason upside down in valuation for divorce- businesses that cannot be sold nonetheless have value in the context of a divorce.
Family Limited Partnerships and LLCs- Valuation of and Issues on Valuation Discounts
Family Limited Partnerships with Marketable Securities: Their Valuation
Family Limited Partnerships with Real Estate: Are Valuation Discounts Always Appropriate?
Fractional Interests in Real Estate- Valuation Issues
Fractional Interests in Real Estate: Their Valuation (Why the Parts are Not Worth Their Share of the Whole)
Income Valuation Approach and its Use in Business Valuation
The Income Valuation Approach
Understanding the Income Valuation Approach: A Primer For Judges Who Must Regularly Hear Business Valuation Cases
Critically Assessing a Capitalization Rate: Is it Reasonable?
Industry Consolidation and the Impact on Business Value
What Does Industry Consolidation Mean for Your Company's Value?
Jointly Retained Business Valuations
Jointly Retained Business Valuations in Disputes- Steps Necessary to Make the Process Works
Selecting the Right Business Appraiser for a Jointly Retained Business Valuation Need
What Should be in Report in a Jointly Retained Valuation for a Dispute
Management Interview in a Business Valuation Assignment
The Effective Valuation Interview
Marketability Discounts in Business Valuation
Discounts for Lack of Marketability: A Review of Studies and Factors to be Considered
Mandelbaum Case Raises the Bar in Supporting Business Valuation Discounts in Tax Court
Marketability Discounts: Is New Really Better? - There is a move by some to use mathematical models to quantify marketability discounts. This article considers those models and whether or not they are really superior to discount studies.
Selling Out to a Public Company: Blockage, Restricted Shares, and Value
The 35% "Standard" Marketability Discount: RIP
Merger/Acquisition Method in Business Valuation
In Defense of the Merged and Acquired Companies Valuation Method
The Top 10 Errors Made Using the Merged and Acquired Companies Valuation Method
Professional License Valuation
License Valuation Revisited - A hypothetical, humorous valuation of the driver's license of stock car driver Jeff Gordon for his divorce.
Professional License Valuation Voodoo: Junk Science in a Family Law Context
Professional Practice Business Valuations and Issues
Medical Practice Sales to Hospitals: A Business Valuation Minefield, Part 1
Medical Practice Sales to Hospitals: A Business Valuation Minefield, Part 2
Medical Practice Sales to Hospitals: A Business Valuation Minefield, Part 3
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value?
Professional Practice Buy-Sell Agreements- Do They Equal Fair Market Value? Part II- The Courts
S Corporation Business Valuation Issues
A Gross Result in the Gross Case: All Your Prior S Corporation Valuations Are Invalid
ESOPs and S Corporations
S Corporation (and LLC) Added Value (Fair Value, Fall 2009)- If you've read the other articles here on this issue, this article brings the issue up to its Fall 2009 status, which is much changed, along with a discussion of some of the valuation methods and studies related to S corporation valuation.
Some Observations on Tax Affecting
Voting, Non-Voting Recapitalizations in S Corporations
Selling the Family Business
The Key Steps Involved in Successfully Selling the Closely Held Business
Selecting a Business Valuation Firm That Can Also Sell Your Business
Preparing a Company for Sale. Obtaining the Best Price
Stock Option Valuation Methods and Issues
A Fountain Run Dry - The North Carolina Court of Appeals reaches a faulty decision on valuing stock options for divorce in North Carolina that flies in the face of widely accepted real world methodologies in how options are really bought and sold.
Stock Option Valuation Explained for Divorce and Estate Planning Attorneys
Valuation Issues- Other
Key Valuation Trends and Their Importance
Contact Information for a Business Valuation
George Hawkins, ASA, CFA
Managing Director
Phone: (704) 499-9009 (direct)
Send e-mail to George
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Michael Paschall, ASA, CFA, JD
Managing Director
Phone: (704) 334-1625 (direct)
Send e-mail to Michael
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