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How One Valuation Firm Treats the IRS as the Customer
Taking the perspective that the IRS is the real customer in most valuation work today, Dr. Rader discusses point-by-point the IRS prescription for valuing non-traded securities in IRS Revenue Rule 59-60 and how SPAR's approach deals with the requirements. The article provides examples and insight into SPAR's methodology.
Discounts and Premia, by Shannon Pratt, CFA
The issue of discounts and premia is very important in terms of money in business valuations. It is also one of the more difficult aspects of valuation. This is particularly true when partial interests rather than entire businesses are being valued. Not only is it a big money item, but it often tends to be very controversial and poorly understood.
Valuation of Fractional Interests in Real Estate Partnerships - Another Approach, by Brad Davidson
The degree to which a fractional interest in a real estate limited partnership should be discounted relative to an otherwise identical fee simple interest is considered. The author discusses two valuation methods - income discounting and fractional discounting - and suggests when each is appropriate.
Click to download a PDF version (with graphs)
"Why You Need A Valuation" by Thom Forbes, from UBS Symposium Newsletter
(April 2004).
This article appeared in a newsletter UBS Securities
sent to its clients in April 2004. It provides case studies illustrating
the risks facing owners who fail to know what their businesses are worth.
Several prominent practitioners are interviewed and make several important
observations about valuations.