{"product_id":"business-valuation-discounts-and-premiums-hardback-9780470371480","title":"Business Valuation Discounts and Premiums (Hardback) 9780470371480","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eBusiness Valuation Discounts and Premiums\u003c\/font\u003e\u003cbr\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003c\/p\u003e\n\u003cp\u003e\u003cfont size=\"4\"\u003eShannon P. Pratt (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780470371480, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 15 May 2009\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e512 pages, Exhibits: 68 B\u0026amp;W, 0 Color\u003cbr\u003e25.6 x 18 x 4.6 cm, 1.043 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cp\u003e\u003cb\u003eBusiness Valuation Discounts and Premiums\u003c\/b\u003e \u003c\/p\u003e\n\u003cp\u003e\u003cb\u003eSECOND EDITION\u003c\/b\u003e \u003c\/p\u003e\n\u003cp\u003eDiscounts and premiums do not just affect the value of a company; they play a crucial role in influencing a host of other factors and conditions that can make or break a deal. When it comes to business valuations, it's the business appraiser's responsibility to be intimately knowledgeable with every aspect of discounts and premiums: the different types, the situations when they may or may not apply, and how to quantify them. \u003c\/p\u003e\n\u003cp\u003eIn this newly updated edition of \u003ci\u003eBusiness Valuation: Discounts and Premiums,\u003c\/i\u003e Shannon Pratt—one of the nation's most recognized and respected business valuation consultants—brings together the latest collective wisdom and knowledge about all major business discounts and premiums. \u003c\/p\u003e\n\u003cp\u003eAddressing the three basic approaches to conducting a valuation—the income approach, the market approach, and the asset approach—Shannon Pratt deftly and logically details the different discounts or premiums that may be applicable, depending on the basic valuation approach used, and how the valuation approaches used affect the level. \u003c\/p\u003e\n\u003cp\u003eClearly written and thorough, \u003ci\u003eBusiness Valuation: Discounts and Premiums, Second Edition\u003c\/i\u003e provides business appraisers, accountants, attorneys, and business owners with an arsenal of information for their professional toolkit that can be applied to every major evaluation case they might face in any deal. \u003c\/p\u003e\n\u003cp\u003eThis updated edition features timely, comprehensive coverage on: \u003c\/p\u003e\n\u003cul\u003e \u003cli\u003eStrategic acquisitions\u003c\/li\u003e \u003cli\u003eExtensive empirical data\u003c\/li\u003e \u003cli\u003ePre-IPO marketability discount studies\u003c\/li\u003e \u003cli\u003eMerger and acquisition negotiations, empirical evidence from completed transactions, and positions taken by courts in litigations\u003c\/li\u003e \u003cli\u003eStrategic acquisition premiums\u003c\/li\u003e \u003cli\u003eStudies on minority discounts\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eDetailed, authoritative, and complete in its coverage, \u003ci\u003eBusiness Valuation: Discounts and Premiums, Second Edition\u003c\/i\u003e gets to the core of one of the more complex challenges faced by business appraisers, and arms readers with the understanding and techniques needed to successfully meet and exceed their job expectations.\u003c\/p\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003eList of Exhibits xv\u003c\/p\u003e \u003cp\u003eAbout the Author xix\u003c\/p\u003e \u003cp\u003eAbout the Contributing Authors xxi\u003c\/p\u003e \u003cp\u003eForeword xxv\u003c\/p\u003e \u003cp\u003ePreface xxvii\u003c\/p\u003e \u003cp\u003eAcknowledgments xxix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Overview of Business Valuation Discounts and Premiums and the Bases to Which They Are Applied 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDiscounts and Premiums Are Big-Money Issues 2\u003c\/p\u003e \u003cp\u003e‘‘Entity Level’’ versus ‘‘Shareholder Level’’ Discounts and Premiums 3\u003c\/p\u003e \u003cp\u003eHow the Valuation Approaches Used Affect the Level of Value 8\u003c\/p\u003e \u003cp\u003eUse of Public Company Data to Quantify Discounts and Premiums 9\u003c\/p\u003e \u003cp\u003eHow the Standard of Value Affects Discounts and Premiums 10\u003c\/p\u003e \u003cp\u003eAmerican Society of Appraisers Business Valuation Standard VII:Valuation Discounts and Premiums 12\u003c\/p\u003e \u003cp\u003eSummary 13\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Minority Discounts and Control Premiums 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRelevant Definitions 16\u003c\/p\u003e \u003cp\u003eBasic Minority\/Control Value Relationship 16\u003c\/p\u003e \u003cp\u003ePrerogatives of Control 17\u003c\/p\u003e \u003cp\u003eFactors Affecting Degree of Control 18\u003c\/p\u003e \u003cp\u003eHow the Valuation Methodology Affects the Minority Discount or Control Premium 25\u003c\/p\u003e \u003cp\u003eDo Publicly Traded Minority Stock Prices Reflect Control Value? 29\u003c\/p\u003e \u003cp\u003eTreatment of Control Premiums in the Delaware Courts 35\u003c\/p\u003e \u003cp\u003eHow the Purpose of the Valuation Affects Minority Discounts or Control Premiums 37\u003c\/p\u003e \u003cp\u003eSummary 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Empirical Data Regarding Minority Discounts and Control Premiums 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePremiums Paid in Acquisitions 41\u003c\/p\u003e \u003cp\u003eIdentifying Industries with Higher or Lower Control Premiums 62\u003c\/p\u003e \u003cp\u003eCaveats Regarding Use of Control Premium Data 63\u003c\/p\u003e \u003cp\u003eAre Control Premiums Too High? 65\u003c\/p\u003e \u003cp\u003ePercentage Discounts from Net Asset Value 66\u003c\/p\u003e \u003cp\u003eSummary 66\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Minority Discounts and Control Premiums in the Courts 68\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGift, Estate, and Income Tax Cases 70\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Control in Employee Stock Ownership Plan Cases 74\u003c\/p\u003e \u003cp\u003eDissenting Shareholder Cases 75\u003c\/p\u003e \u003cp\u003eShareholder Oppression Cases 80\u003c\/p\u003e \u003cp\u003eMarital Dissolution Cases 80\u003c\/p\u003e \u003cp\u003eBankruptcy Case 82\u003c\/p\u003e \u003cp\u003eSummary 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Discounts for Lack of Marketability for Minority Interests: Concept and Evidence 86\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePublic Market Benchmark for Marketability 86\u003c\/p\u003e \u003cp\u003eEmpirical Evidence to Quantify Discounts for Lack of Marketability 87\u003c\/p\u003e \u003cp\u003eRestricted Stock Studies 88\u003c\/p\u003e \u003cp\u003ePre–Initial Public Offering Discount for Lack of Marketability Studies 90\u003c\/p\u003e \u003cp\u003eCourts’ Aversion to ‘‘Benchmarking’’ 91\u003c\/p\u003e \u003cp\u003eRegulatory and Court Recognition of Empirical Marketability Discount Studies 92\u003c\/p\u003e \u003cp\u003eSummary 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Synopsis of Restricted Stock Studies 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSecurities and Exchange Commission Institutional Investor Study 96\u003c\/p\u003e \u003cp\u003eGelman Study 100\u003c\/p\u003e \u003cp\u003eTrout Study 100\u003c\/p\u003e \u003cp\u003eMoroney Study 101\u003c\/p\u003e \u003cp\u003eMaher Study 101\u003c\/p\u003e \u003cp\u003eStandard Research Consultants Study 101\u003c\/p\u003e \u003cp\u003eSilber Study 101\u003c\/p\u003e \u003cp\u003eFMV Opinions Study 103\u003c\/p\u003e \u003cp\u003eManagement Planning Study 104\u003c\/p\u003e \u003cp\u003eJohnson Study 110\u003c\/p\u003e \u003cp\u003eColumbia Financial Advisors Study 110\u003c\/p\u003e \u003cp\u003eLiquiStat Database 111\u003c\/p\u003e \u003cp\u003eSummary 111\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 LiquiStat Database (Restricted Stocks, Options, Warrants, and Convertible Securities) 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRestricted Stock as a Basis 114\u003c\/p\u003e \u003cp\u003eBiases Beyond Illiquidity in Traditional Restricted Stock Studies 114\u003c\/p\u003e \u003cp\u003eHow LiquiStat Is Different 115\u003c\/p\u003e \u003cp\u003eOptions and Warrants in LiquiStat 116\u003c\/p\u003e \u003cp\u003eConvertible Securities in LiquiStat 117\u003c\/p\u003e \u003cp\u003eSummary 117\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Blockage Discounts 118\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBlockage Is Distinct from Restricted Stock 119\u003c\/p\u003e \u003cp\u003eFactors to Analyze in Quantifying Blockage Discounts 119\u003c\/p\u003e \u003cp\u003eMust Consider Ways of Selling Stock 122\u003c\/p\u003e \u003cp\u003e‘‘Price Pressure’’ and ‘‘Market Exposure’’ 122\u003c\/p\u003e \u003cp\u003eBlock Buyer Could Ameliorate Blockage Discount 122\u003c\/p\u003e \u003cp\u003eBlockage Discounts Recognized in Estate and Gift Tax Regulations 123\u003c\/p\u003e \u003cp\u003eBlockage Discounts in U.S. Tax Court 123\u003c\/p\u003e \u003cp\u003eFinancial Accounting Standards That May Affect Blockage Discounts 126\u003c\/p\u003e \u003cp\u003eBlockage Discounts Used to Estimate Illiquidity Discounts 126\u003c\/p\u003e \u003cp\u003eSummary 126\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 John Emory Pre–Initial Public Offering Discount for Lack of Marketability Studies—Complete Underlying Data 128\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStudy #1: Adjusted Study, January 1980–June 1981 129\u003c\/p\u003e \u003cp\u003eStudy #2: Adjusted Study, January 1985–June 1986 129\u003c\/p\u003e \u003cp\u003eStudy #3: Adjusted Study, August 1987–January 1989 130\u003c\/p\u003e \u003cp\u003eStudy #4: Adjusted Study, February 1989–July 1990 130\u003c\/p\u003e \u003cp\u003eStudy #5: Adjusted Study, August 1990–January 1992 130\u003c\/p\u003e \u003cp\u003eStudy #6: Adjusted Study, February 1992–July 1993 130\u003c\/p\u003e \u003cp\u003eStudy #7: Adjusted Study, January 1994–June 1995 131\u003c\/p\u003e \u003cp\u003eStudy #8: Adjusted Study, November 1995–April 1997 131\u003c\/p\u003e \u003cp\u003eStudy #9: Adjusted Study, Dot-Com Companies, May 1997–March 2000 131\u003c\/p\u003e \u003cp\u003eStudy #10: Adjusted Expanded Study, May 1997–December 2000 133\u003c\/p\u003e \u003cp\u003eSummary 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Valuation Advisors Discount for Lack of Marketability Study 182\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription of Study 182\u003c\/p\u003e \u003cp\u003eResults of Study 184\u003c\/p\u003e \u003cp\u003eSummary 185\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Factors Affecting Discounts for Lack of Marketability for Minority Interests 186\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSize of Distributions 187\u003c\/p\u003e \u003cp\u003eProspects for Liquidity 191\u003c\/p\u003e \u003cp\u003ePool of Potential Buyers 193\u003c\/p\u003e \u003cp\u003eRisk Factors 194\u003c\/p\u003e \u003cp\u003eSummary 198\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Discounts for Lack of Marketability for Controlling Interests 200\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Marketability for Controlling Interests: A Controversial Concept 202\u003c\/p\u003e \u003cp\u003e‘‘Control, Marketable’’ Is an Oxymoron 202\u003c\/p\u003e \u003cp\u003eBases from Which Controlling Interest Discounts for Lack of Marketability May Be Deducted 202\u003c\/p\u003e \u003cp\u003eFactors Affecting Controlling Interest Discounts for Lack of Marketability 204\u003c\/p\u003e \u003cp\u003ePublic versus Private Company Acquisition Multiples 207\u003c\/p\u003e \u003cp\u003eCourt Treatment of Controlling Interest Discounts for Lack of Marketability 210\u003c\/p\u003e \u003cp\u003eSummary 211\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 The Quantitative Marketability Discount Model: A Shareholder Level DCF Model 213\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 213\u003c\/p\u003e \u003cp\u003eThe Structure of the Shareholder Level DCF Model 214\u003c\/p\u003e \u003cp\u003eAVisual Representation of the Shareholder Level DCF Model 217\u003c\/p\u003e \u003cp\u003eFactors Contributing to Marketability Discounts 218\u003c\/p\u003e \u003cp\u003eSummary 223\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Marketability Discounts in the Courts—Minority Interests 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGift and Estate Tax Cases 227\u003c\/p\u003e \u003cp\u003eEmployee Stock Ownership Plan Case 231\u003c\/p\u003e \u003cp\u003eDissenting Shareholder Cases 232\u003c\/p\u003e \u003cp\u003eMinority Oppression Cases 234\u003c\/p\u003e \u003cp\u003eMarital Dissolution Cases 234\u003c\/p\u003e \u003cp\u003eSummary 238\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Marketability Discounts in the Courts—Controlling Interests 241\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGift and Estate Tax Cases 241\u003c\/p\u003e \u003cp\u003eMarital Dissolution Cases 243\u003c\/p\u003e \u003cp\u003eSummary 244\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Voting versus Nonvoting Stock 245\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVoting versus Nonvoting Stock Scenarios 245\u003c\/p\u003e \u003cp\u003eEmpirical Studies Show Little Differential for Small Minority Interests 246\u003c\/p\u003e \u003cp\u003eTransactions Involving Premiums for Control Blocks 251\u003c\/p\u003e \u003cp\u003eCourt Cases Involving Voting versus Nonvoting Stock 251\u003c\/p\u003e \u003cp\u003eSummary 258\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Key Person Discounts and Premiums 260\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmpirical Evidence Supports Key Person Discount 261\u003c\/p\u003e \u003cp\u003eInternal Revenue Service Recognizes Key Person Discount 263\u003c\/p\u003e \u003cp\u003eFactors to Consider in Analyzing the Key Person Discount 264\u003c\/p\u003e \u003cp\u003eQuantifying the Magnitude of the Key Person Discount 265\u003c\/p\u003e \u003cp\u003eU.S. Tax Court Cases Involving Key Person Discounts 266\u003c\/p\u003e \u003cp\u003eKey Person Discounts in Marital Dissolutions 270\u003c\/p\u003e \u003cp\u003eKey Person Discounts in Other Types of Cases 272\u003c\/p\u003e \u003cp\u003eSummary 274\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Discounts for Trapped-In Capital Gains Taxes 276\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRationale for Trapped-In Capital Gains Tax Discount 277\u003c\/p\u003e \u003cp\u003e‘‘General Utilities Doctrine’’ 277\u003c\/p\u003e \u003cp\u003eTax Court Recognizes Trapped-In Capital Gains 278\u003c\/p\u003e \u003cp\u003eInternal Revenue Service Acquiesces to Trapped-In Capital Gains Discount 279\u003c\/p\u003e \u003cp\u003eSubsequent Tax Cases Regularly Recognize Trapped-In Capital Gains Tax Discount 280\u003c\/p\u003e \u003cp\u003eTrapped-In Capital Gains in Dissenting Stockholder Actions 282\u003c\/p\u003e \u003cp\u003eTrapped-In Capital Gains in Bankruptcy Court 283\u003c\/p\u003e \u003cp\u003eTrapped-In Capital Gains Taxes in Marital Dissolutions 283\u003c\/p\u003e \u003cp\u003eTreatment of Capital Gains Tax Liability 286\u003c\/p\u003e \u003cp\u003eTreatment of Capital Gains Tax Liability in S Corporations 288\u003c\/p\u003e \u003cp\u003eSummary 288\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Nonhomogeneous Assets (‘‘Portfolio’’) Discounts 291\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePortfolio Discount Principle 291\u003c\/p\u003e \u003cp\u003eEmpirical Evidence Supporting Portfolio Discounts 292\u003c\/p\u003e \u003cp\u003eHow to Value Companies with Disparate Portfolios 294\u003c\/p\u003e \u003cp\u003eQuantifying the Portfolio Discount 295\u003c\/p\u003e \u003cp\u003ePortfolio Discounts in the Courts 295\u003c\/p\u003e \u003cp\u003eSummary 298\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Discounts for Environmental, Litigation, and Other Contingent Liabilities 300\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConcept of the Contingent Liability Discount 300\u003c\/p\u003e \u003cp\u003eFinancial Accounting Standard #5 May Provide Guidance in Quantifying Contingent Liabilities 301\u003c\/p\u003e \u003cp\u003eTreatment of Contingencies in the U.S. Tax Court 301\u003c\/p\u003e \u003cp\u003eTreatment of Contingencies in Marital Dissolution 304\u003c\/p\u003e \u003cp\u003eSummary 304\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 Discount Adjustments for Limited Partnership Interests and Other Asset Management Entities 305\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 307\u003c\/p\u003e \u003cp\u003ePartnership Features 307\u003c\/p\u003e \u003cp\u003eOther State Law and Regulatory Issues 308\u003c\/p\u003e \u003cp\u003eCompliance with Federal Income Tax Regulations 308\u003c\/p\u003e \u003cp\u003eCompliance with Federal Transfer Tax Regulations 309\u003c\/p\u003e \u003cp\u003eAnalysis of Ownership and Classes of Interests 309\u003c\/p\u003e \u003cp\u003eAnalysis of Underlying Adjusted Net Asset Value 310\u003c\/p\u003e \u003cp\u003eAnalysis of Income Capacity Value 310\u003c\/p\u003e \u003cp\u003eValuation of Noncontrolling Entity Interests 311\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Control and Marketability 313\u003c\/p\u003e \u003cp\u003eCourt Cases Regarding Limited Partnership Values 315\u003c\/p\u003e \u003cp\u003eSummary 321\u003c\/p\u003e \u003cp\u003e\u003cb\u003e22 Adjusting Values for Differences in Size 323\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIncome Approach 323\u003c\/p\u003e \u003cp\u003eMarket Approach 325\u003c\/p\u003e \u003cp\u003eCriticisms of the Size Premium 329\u003c\/p\u003e \u003cp\u003eCourt Cases Involving the Size Premium 329\u003c\/p\u003e \u003cp\u003eSummary 334\u003c\/p\u003e \u003cp\u003eSources of Additional Data 334\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 Discounts and Premiums in ESOP Valuations 337\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eESOP Definition, Types, and Benefits 337\u003c\/p\u003e \u003cp\u003e‘‘Adequate Consideration’’ for ESOP Valuation Purposes 338\u003c\/p\u003e \u003cp\u003eControl Premiums in ESOP Valuations 339\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Marketability in ESOP Valuations 339\u003c\/p\u003e \u003cp\u003eESOP Court Cases 340\u003c\/p\u003e \u003cp\u003eSummary 344\u003c\/p\u003e \u003cp\u003e\u003cb\u003e24 Discounts and Premiums in Divorce Disputes 345\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eControl Premiums in Divorce 345\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Marketability in Divorce 345\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Voting Rights in Divorce 346\u003c\/p\u003e \u003cp\u003eKey Person Discounts in Divorce 346\u003c\/p\u003e \u003cp\u003eThe Effective Discount for Personal Goodwill in Divorce 346\u003c\/p\u003e \u003cp\u003eActive versus Passive Appreciation 347\u003c\/p\u003e \u003cp\u003eSummary 347\u003c\/p\u003e \u003cp\u003e\u003cb\u003e25 Discounts and Premiums in Corporate and Partnership Dissolution and Oppression Cases 349\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDissolution for Shareholder (Partner) Oppression 349\u003c\/p\u003e \u003cp\u003eDiscounts 351\u003c\/p\u003e \u003cp\u003eCalifornia Oppression Cases 357\u003c\/p\u003e \u003cp\u003eDelaware’s Approach 359\u003c\/p\u003e \u003cp\u003eSummary 360\u003c\/p\u003e \u003cp\u003e\u003cb\u003e26 Discounts and Premiums in Fair Value for Financial Reporting 362\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 362\u003c\/p\u003e \u003cp\u003eFair Value of Reporting Units 363\u003c\/p\u003e \u003cp\u003eFair Value of Share-Based Compensation 369\u003c\/p\u003e \u003cp\u003eSummary 371\u003c\/p\u003e \u003cp\u003eAdditional Reading 371\u003c\/p\u003e \u003cp\u003e\u003cb\u003e27 Premium and Discount Issues in Undivided Interest Valuations 372\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription and Characteristics of Undivided Interests 373\u003c\/p\u003e \u003cp\u003eAppraisal of Assets in Fee-Simple Interest 376\u003c\/p\u003e \u003cp\u003eFactors Affecting the Value of an Undivided Interest 379\u003c\/p\u003e \u003cp\u003eValuation Adjustments for Undivided Interests 381\u003c\/p\u003e \u003cp\u003eCourt Decisions Related to Undivided Interest Discounts 389\u003c\/p\u003e \u003cp\u003eSummary 395\u003c\/p\u003e \u003cp\u003e\u003cb\u003e28 Common Errors in Applying Discounts and Premiums 397\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUsing Synergistic Acquisition Premiums to Quantify Premiums for Control 398\u003c\/p\u003e \u003cp\u003eAssuming That the Discounted Cash Flow Valuation Method Always Produces a Minority Value 398\u003c\/p\u003e \u003cp\u003eAssuming That the Guideline Public Company Method Always Produces a Minority Value 398\u003c\/p\u003e \u003cp\u003eValuing Underlying Assets Rather Than Stock or Partnership Interests 399\u003c\/p\u003e \u003cp\u003eUsing Minority Interest Marketability Discount Data to Quantify Marketability Discounts for Controlling Interests 399\u003c\/p\u003e \u003cp\u003eUsing Only Restricted Stock Studies (and Not Pre–Initial Public Offering Studies) as Benchmark for Discounts for Lack of Marketability 399\u003c\/p\u003e \u003cp\u003eInadequate Analysis of Relevant Factors 400\u003c\/p\u003e \u003cp\u003eIndiscriminate Use of Average Discounts or Premiums 400\u003c\/p\u003e \u003cp\u003eApplying (or Omitting) a Premium or Discount Inappropriately for the Legal Context 400\u003c\/p\u003e \u003cp\u003eApplying Discounts or Premiums to the Entire Capital Structure Rather than Only to Equity 401\u003c\/p\u003e \u003cp\u003eQuantifying Discounts or Premiums Based on Past Court Cases 401\u003c\/p\u003e \u003cp\u003eUsing an Asset Appraiser to Quantify Discounts or Premiums for Stock or Partnership Interests 401\u003c\/p\u003e \u003cp\u003eSummary 401\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix A Bibliography 403\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBooks 403\u003c\/p\u003e \u003cp\u003eArticles 404\u003c\/p\u003e \u003cp\u003ePeriodicals 407\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix B Data Resources 410\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eControl Premiums\/Minority Discounts 410\u003c\/p\u003e \u003cp\u003eDiscounts for Lack of Marketability 410\u003c\/p\u003e \u003cp\u003eDiscounts from Net Asset Value for Limited Partnership Interests 412\u003c\/p\u003e \u003cp\u003eDiscounts from Net Asset Value for REITs and REOCs 413\u003c\/p\u003e \u003cp\u003eDiscounts from Net Asset Value for Closed-End Investment Funds 413\u003c\/p\u003e \u003cp\u003eDiscount and Capitalization Rates 414\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix C How Much Can Marketability Affect Security Values? 416\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI. The Framework 417\u003c\/p\u003e \u003cp\u003eII. The Upper Bound 418\u003c\/p\u003e \u003cp\u003eIII. A Comparison 420\u003c\/p\u003e \u003cp\u003eIV. Conclusion 422\u003c\/p\u003e \u003cp\u003eReferences 422\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix D Internal Revenue Service Revenue Ruling 77-287 424\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSection 1. Purpose 424\u003c\/p\u003e \u003cp\u003eSec. 2. Nature of the Problem 424\u003c\/p\u003e \u003cp\u003eSec. 3. Background and Definitions 424\u003c\/p\u003e \u003cp\u003eSec. 4. Securities Industry Practice in Valuing Restricted Securities 425\u003c\/p\u003e \u003cp\u003eSec. 5. Facts and Circumstances Material to Valuation of Restricted Securities 427\u003c\/p\u003e \u003cp\u003eSec. 6. Weighing Facts and Circumstances Material to Restricted Stock Valuation 428\u003c\/p\u003e \u003cp\u003eSec. 7. Effect on Other Documents 429\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix E Securities and Exchange Commission Rules 144 and 144A 430\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistory 442\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix F Table of Cases 448\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndex 455\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52173819937048,"sku":"9780470371480","price":83.29,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780470371480_14935.jpg?v=1781173337","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/business-valuation-discounts-and-premiums-hardback-9780470371480","provider":"Freshly Printed Books","version":"1.0","type":"link"}