Chris Mercer

MARCH 8, 2023

This post provides a discussion of several implications of the definition of the standard of value known as fair market value. We focus first on the definition of fair market value. We then look at the implications for the so-called “marketability discount for controlling interests.”

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Appraisal Rights

APRIL 9, 2020

Further, while the statute defines “fair value” to eliminate the marketability and minority discounts typically associated with “fair market value” valuations, courts in Illinois have found that “fair market value” is a relevant factor to be considered when determining “fair value.”

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Equilest

AUGUST 18, 2024

If you're looking to deepen your understanding of business appraisal standards, this article dives into the significance of Revenue Ruling 59-60 and USPAP. Discover how these key guidelines help appraisers achieve accurate, fair, and legally defensible valuations. H2: How does USPAP affect business appraisal?

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Chris Mercer

MARCH 7, 2024

” And the answer holds regardless of any certifications appraisers might hold. Procedural Guidelines (PG) are designed to provide more detailed guidance for consideration by business appraisers than found in the base standards themselves. The value of the underlying enterprise or asset, if applicable.

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Chris Mercer

APRIL 7, 2023

My most recent post, titled Fair Market Value and the Nonexistent Marketability Discount , generated quite a discussion when posted on LinkedIn. The post provided a solid rationale that there is no such thing as a marketability discount for controlling interests of companies.

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Chris Mercer

FEBRUARY 23, 2024

In Mercer’s Musings #2, we discussed the old and cold data on restricted stock transactions that have been misused by appraisers for decades. This conclusion applies to all appraisals, including those prepared for the Internal Revenue Service. In other words, value is a function of expected cash flow, growth, and risk.

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Appraisal Rights

APRIL 9, 2019

This includes reviewing business information and assessing equity risk in order to produce a value conclusion addressing those risk factors. Valuation discounts are essentially the difference between fair value and fair market value. Declare/pay shareholder dividends. Influence and control the board.

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