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Fair Market Value and the Nonexistent Marketability Discount for Controlling Interests

Chris Mercer

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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What is the Adjusted Book Value Method?

Equilest

Have you wondered What is the Adjusted Book Value Method? With our "What is the Adjusted Book Value Method?" Does anyone really know what Adjusted Book Value Method is? What is the Adjusted Book Value Method? The adjusted book value approach is a valuation approach based on the balance sheet.

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The Asset Approach Made Simple

Peak Business Valuation

At Peak Business Valuation , we frequently use the asset approach when valuing a small business. A common method under the asset approach is The Adjusted Book Value Method. This asset approach involves adjusting the book value of a company’s assets and liabilities to reflect their current market values.

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Case Study: Valuation of Mid-Sized EPC Company in India

RNC

Introduction: A mid-sized EPC company in India, specializing in infrastructure projects is undergoing a thorough business valuation to ascertain its fair market value for potential strategic partnerships, mergers, or acquisitions. Questions Arise: How to value a complex project mix with varying risk profiles and revenue streams?

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How Much Does a Small Business Valuation Cost?

Equilest

Have you wondered What is the Adjusted Book Value Method? With our "What is the Adjusted Book Value Method?" Does anyone really know what Adjusted Book Value Method is? What is the Adjusted Book Value Method? The adjusted book value approach is a valuation approach based on the balance sheet.

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Maximizing Acquisition Insights: Unraveling Purchase Price Allocation

Equilest

Net Identifiable Assets This encompasses the total value of assets owned by the acquired company, minus its liabilities. Tangible and intangible assets find a home here, reflecting their book value on the target company's balance sheet. Essentially, it signifies the disparity between fair market value and purchase price.

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Revenue Ruling 59-60 and USPAP Standards in Business Appraisal

Equilest

It provides guidelines on how to determine the fair market value of a closely held business for estate and gift tax purposes. These factors collectively help establish a fair market value that reflects what a willing buyer and a willing seller would agree upon in an arm’s-length transaction.