DOCSLIB.ORG

Business Valuation

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Business Valuation Business Valuation www.FelicianoFinancial.com Feliciano Financial Group 1828 East Southeast Loop 323, Suite 200 Tyler, Texas 75701 (903) 533-8585 Feliciano Financial does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Securities offered through Lion Street Financial, LLC, Member FINRA & SIPC. Investment advisory services offered through Lion Street Advisors, LLC. Feliciano Financial and Lion Street Financial are not affiliated. Business Valuation Business Valuation The need for valuing a closely held business arises potentially from a number of sources. These include: • Buy-Sell Agreements • Minority Stockholder Disputes • Estate and Gift Taxation Needs • Marital Disputes Regardless of the need or of which party is being represented, the approaches, concepts and results of a business valuation should be the same. One of the “problems” is that valuations are subject to numerous subjective interpretations, rather than precise scientific applications of the facts and data sources. Therefore, it is not only common, but also probable, that competent, conscientious and sincere experts will arrive at different results from the same data. However, if the subject is approached as objectively as possible and proper valuation techniques used, differences that exist should be rather minor, so taking the numbers in total and dividing them by the number of valuations should result in a fair appraisal. This is certainly not the case where there are two appraisals that are considerable disparate. In such a situation, justice is rarely served when the results are simply split down the middle – the baby in the Feliciano Financial Group Business Valuation Solomon story. Just as in that case, justice would not have been served by an average; neither is it served when two valuations, so far apart that one or both of them have to be flagrantly in error, are simply averaged. Such poorly done reports can be recognized by an intelligent, informed and careful analysis. This document should give you an understanding of valuation procedures and the proper contents and approaches for a valuation report. In addition, you will be able to zero in on reports that have flagrant violations, recognize such violations of good valuation technique and, at the same time, be able to appreciate those reports that most likely are well done. The Starting Point The starting point in virtually any valuation of a closely held business is the reconstructed financial statement of the business. The emphasis is placed on “reconstructed” for very valid reasons. In the typical situation, even (though to somewhat lesser degree) audited (certified opinion) financial statements are usually not truly indicative of the operations and worth of that business. There may be a multitude of reasons, but the most common are for the bottom line preservation, that is, to save taxes. Unless financial statements have been “pumped up” for bank financing, it is most common that the financial statements and, especially the tax returns, actually understate the results of the business. Various steps may have been taken, some proper tax wise and some not, to reduce the corporate profit and the personal income of the principals to minimize the tax burden. • Payment of personal expenses through the business This common maneuver may include the payment of substantial amounts of personal expenses through the business (auto, medical, entertainment, utility bills, family on the payroll, etc.). • Burying expenses to obtain a tax deduction No one in business for any length of time can feign surprise at the concept of a business burying various expenses to obtain a tax deduction. Of course, varying degrees of this practice apply. It is one thing from a business to pay for personal entertainment (dinners, etc.) and write off a company car as 100% business instead by 60% business. It is an entirely different thing for a business to pay Feliciano Financial Group Business Valuation personal utility bills, to rake cash off the top before it hits the books, to permit relatives in no-show jobs to be on company payroll, etc. • Use of LIFO inventory versus FIFO There are other very legitimate tax and non-tax reasons why financial statements may understate the value of a business. From a tax point of view, for instance, this could include the use of LIFO (last-in, first- out) inventory. Inventory represents a pool of merchandise, the sale product of the business, bought over a period of time, usually at varying prices. The most common inventory method is FIFO (first-in, first-out). That is, as items are sold, they are considered sold from the items earliest purchased. In an inflationary period, this means that the items sold are given the lower price costs and the items remaining in inventory the higher price costs. This, in fact, is typically the normal flow, and typically represents the true economic result of the sales operations of a company. LIFO, however, a perfectly legitimate tax maneuver, treats items sold as coming from those last purchased, which means they are expensed at a higher price value and, thus, the remaining inventory is stated at a lower value. The result is that a greater amount of cost is written off and less inventory value is left for the balance sheet, thereby understating the worth of the company. More and more companies are adopting LIFO to save tax dollars, especially considering the inflation of the past several years. Notwithstanding the apparent reduction in the rate of inflation, we still have inflation, and barring expectations of a deflationary society, LIFO for a profitable operation is probably a wise move. Yet, when viewing financial statements stated on a LIFO basis, one must recognize that both the profits and balance sheet are understated. • Assets appreciated or depreciated very quickly Other balance sheet understatements include assets that have either appreciated over time or depreciated far more rapidly than the true economics of the situation. An example occurs when a company owns the plant and land on which it is operating. That land might have been purchased many years ago. In such a case, it is likely worth far more than stated on the balance sheet. This happens because basic accounting principles require assets be carried at cost. • There may be no relevance of cost versus market value Feliciano Financial Group Business Valuation In a situation such as real estate, it is obvious that an appraisal of the realty would be necessary. • Also very common is the use of rapid depreciation In an inflationary economy, this depreciates buildings and equipment far more rapidly than they depreciate economically. A typical example would be a luxury car, purchased at $50,000, written off to zero that in reality may be worth $20,000 to $30,000. Recognition of depreciation adjustments to real value must be given for a proper valuation of the business that has substantial written down assets. The Investigation The necessary precursor to arriving at reconstructed financial statements is the employment of an investigative accountant. While an experienced accountant is not an appraiser in the area of real estate, antiques, collections and the like, few occupations gain as much financial insight into the workings of a business and its market worth as do accountants. Depending on experience, the accountant may have the ability to double as an appraiser. This will depend on the complexity of the case and the money involved. It might be a prudent move to engage a qualified business appraiser. With the cooperation of both sides, it will typically take a qualified investigative accountant or business appraiser a month ideally, or more typically, two or three months to do a complete job. Beginning the Valuation Once the investigative phase is completed, there is a sufficient database from which to begin the valuation. It is common and good practice to utilize the viewpoint of several years, typically five, of operations of the business to appreciate a more complete financial history. Except in unusual circumstances, when a business has existed for several years, it is inappropriate to use only one or two years for valuation purposes. These one or two years may not be indicative of the financial results of the company. Five years, if available, assist in understanding whether or not the company has consistently grown or shrunk, shown profits or losses, Feliciano Financial Group Business Valuation fluctuated widely from year to year or been stagnant and gone nowhere. Putting several years on a comparative schedule gives insight into the overall expense and income structure of the business and highlights significant aberrations from year to year that should probably require special attention before the actual valuation procedure. For example, perhaps in one year, repairs and maintenance to the business building were several thousand dollars more than in any other year. This might lead one to discover in that year a storm or fire had damaged the building that was not adequately insured, and this was a rather extraordinary expense not recurring in nature. In such a case, that extraordinary expense should be removed from the operations of the company, as being not indicative of what one would expect from continuing operations. The other side of the coin is the removing of extraordinary income. Used properly, financial statements should be expressed in such a way to reflect a pattern of the business and what one could expect it to do in the future. It is the future for which one buys a company, and the expectations of such on which a valuation is based. Therefore, those items not indicative of a business and those that are non-recurring should be deleted. The tax effect, benefit or detriment of these extraordinary events should also be deleted. Before one can proceed further using this raw financial operational data, several other steps must be taken and information gathered from outside the business.
Load more

Recommended publications
  • Minority Discounts, Fair Market Value, and the Culture of Estate Taxation William S
    University of Miami Law School University of Miami School of Law Institutional Repository Articles Faculty and Deans 1997 Minority Discounts, Fair Market Value, and the Culture of Estate Taxation William S. Blatt University of Miami School of Law, [email protected] Follow this and additional works at: https://repository.law.miami.edu/fac_articles Part of the Business Organizations Law Commons, and the Tax Law Commons Recommended Citation William S. Blatt, Minority Discounts, Fair Market Value, and the Culture of Estate Taxation, 52 Tax L. Rev. 225 (1997). This Article is brought to you for free and open access by the Faculty and Deans at University of Miami School of Law Institutional Repository. It has been accepted for inclusion in Articles by an authorized administrator of University of Miami School of Law Institutional Repository. For more information, please contact [email protected]. Minority Discounts, Fair Market Value, and the Culture of Estate Taxation WILLIAM S. BLATr* I. INTRODUCTION In valuing blocks of corporate stock, courts often permit a minority discount-a reduction in value that reflects the difficulty of selling shares lacking corporate control.' The allowance of minority dis- counts encourages transactions designed to reduce transfer taxes.2 Taxpayers keep property in corporate solution, sometimes in tiered holding companies,3 and gradually transfer corporate control through multiple gifts of small blocks. Long contested by the government, 4 mi- * Professor of Law, University of Miami School of Law. I would like to thank Jack Bogdanski, Mary Coombs, Joseph Dodge, Mary Louise Fellows, John Gaubatz, Pat Gudridge, Mike Livingston, Grayson McCouch, George Mundstock, Jeff Pennell, Mark Ramseyer, Jim Repetti, Tom Robinson, Deborah Schenk, Sam Thompson, and Larry Zelenak for comments on earlier drafts of this Article.
    [Show full text]
  • A FAMILY LIMITED PARTNERSHIP (FLP) VALUATION EXAMPLE By
    A FAMILY LIMITED PARTNERSHIP (FLP) VALUATION EXAMPLE A FAMILY LIMITED PARTNERSHIP (FLP) VALUATION EXAMPLE A FAMILYBy: LindaLIMITED B. Trugman,PARTNERSHIP CPA/ABV, (FLP) MCBA, VALUATION ASA, MBA EXAMPLE By: Linda B. Trugman, CPA/ABV, MCBA, ASA, MBA By: Linda B. Trugman, CPA/ABV, MCBA, ASA, MBA Family Limited Partnerships (FLPs) have grown in popularity as an estate planning tool and a way to depress transferFamily Limited tax values. Partnerships Business (FLPs) valuation have grownexperts in popularity should be as aware an estate of the planning issues tool involved and a wayin valuing to depress FLP transferFamily Limited tax values. Partnerships Business (FLPs) valuation have grownexperts in popularity should be as aware an estate of the planning issues tool involved and a wayin valuing to depress FLP transferinterests taxand values. how to prepare Business a report valuation that isexperts less likely should to be be challenged aware of by the the issues Internal involved Revenue in Servicevaluing (IRS)FLP or,interests if challenged, and how will to preparemore likely a report be resolved that is less in favor likely ofto thebe challengedtaxpayer. by the Internal Revenue Service (IRS) or,interests if challenged, and how will to preparemore likely a report be resolved that is less in favor likely ofto thebe challengedtaxpayer. by the Internal Revenue Service (IRS) or, if challenged, will more likely be resolved in favor of the taxpayer. Valuation analysts need to do more than focus on what discounts they can use to reduce the value of a FLP Valuation analysts need to do more than focus on what discounts they can use to reduce the value of a FLP Valuationinterest.
    [Show full text]
  • Application of Minority Discount and Control Premium in Business Valuation: Estonian Evidence
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by DSpace at Tartu University Library UNIVERSITY OF TARTU School of Economics and Business Administration Raivo Pleer APPLICATION OF MINORITY DISCOUNT AND CONTROL PREMIUM IN BUSINESS VALUATION: ESTONIAN EVIDENCE Supervisor: Associate Professor in Finance Priit Sander Co-supervisor: Assistant in Finance Mark Kantšukov Tartu 2020 Olen koostanud töö iseseisvalt. Kõik töö koostamisel kasutatud teiste autorite tööd, põhimõttelised seisukohad, kirjandusallikatest ja mujalt pärinevad andmed on viidatud. Raivo Pleer 2 TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................. 3 Abstract ............................................................................................................................. 4 Introduction ....................................................................................................................... 5 1. REVIEW OF LITERATURE ................................................................................... 9 1.1. Minority discount and control premium ............................................................. 9 1.2. Valuation approaches ....................................................................................... 18 1.3. Factors influencing minority discount and control premium ........................... 23 2. DATA AND METHODOLOGY ............................................................................ 25 3. RESULTS AND
    [Show full text]
  • IN the SUPREME COURT of IOWA No. 11–0601 Filed June 14, 2013
    IN THE SUPREME COURT OF IOWA No. 11–0601 Filed June 14, 2013 JOHN R. BAUR, Appellant, vs. BAUR FARMS, INC. and ROBERT F. BAUR, Appellees. Appeal from the Iowa District Court for Madison County, Paul R. Huscher, Judge. Minority shareholder in a closely held farm corporation appeals from the dismissal of his suit alleging oppression. REVERSED AND CASE REMANDED WITH DIRECTIONS. Douglas A. Fulton and Allison M. Steuterman of Brick Gentry, P.C., West Des Moines, for appellant. David L. Charles of Crowley Fleck PLLP, Billings, Montana, and Mark McCormick of Belin McCormick, P.C., Des Moines, for appellees. 2 HECHT, Justice. A minority shareholder of a family farm corporation sued the corporation and its majority shareholder, who served as a director and officer of the corporation. The minority shareholder alleged illegal, oppressive, malicious, and fraudulent acts by the majority shareholder had resulted in waste of the corporation’s assets and constituted a breach of fiduciary duty. The minority shareholder requested dissolution of the corporation or payment of the fair value of his ownership interest. The district court dismissed the action at the conclusion of the minority shareholder’s presentation of evidence in a bench trial. The minority shareholder appeals, contending the district court erred in dismissing the action. We reverse and remand with instructions. I. Factual and Procedural Background. Baur Farms, Inc. (BFI) is a family farm corporation formed in 1966 by brothers Merritt and Edward Baur. At the time of its organization, the corporation took ownership of 1736 acres of land previously farmed by the brothers as partners.
    [Show full text]
  • PSU Disinvestment Valuation Guidelines
    Valuation Methodology CONTENTS CHAPTER I Introduction CHAPTER II Disinvestment Commission's Recommendations CHAPTER III Valuation Methodologies being followed Standardizing the valuation approach & CHAPTER IV methodologies CHAPTER - 1 Introduction 1.1 In any sale process, the sale will materialize only when the seller is satisfied that the price given by the buyer is not less than the value of the object being sold. Determination of that threshold amount, which the seller considers adequate, therefore, is the first pre-requisite for conducting any sale. This threshold amount is called the Reserve Price. Thus Reserve Price is the threshold amount below which the seller generally perceives any offer or bid inadequate. Reserve Price in case of sale of a company is determined by carrying out valuation of the company. In companies which are listed on the Stock Exchanges, market price of the shares serves as a good benchmark for assessing the fair value of the company, though the market price is usually characterized with significant short-term variance due to investor sentiments being influenced by short-term events and environmental aspects. More importantly, most of the PSUs are either not listed on the Stock Exchanges or command extremely limited traded float. They are, therefore, not correctly valued. Thus, deciding the worth of a PSU is indeed a challenging task. 1.2 Another point worth mentioning is that valuation of a PSU is different from establishing the price for which it can be sold. Experts are of the opinion that valuation must be differentiated from price. While the fair value of an asset is based on the assessment of intrinsic value accruing from fundamentals on a stand-alone basis, varying return expectation and underlying strategic aspects for different bidders could influence the price.
    [Show full text]
  • The Process of Valuation – Placing Value on Your Business
    Article: Placing value on your business The process of valuation – Placing value on your business On a regular basis, business owners, investors and experienced bankers look for a simple way to determine business value: a rule of thumb or formula. Hoping to avoid the expense and trouble of hiring a professional valuator, a value formula common to the business type is used; thereby assuming determination of a company’s value can’t be complicated. While using a rule of thumb may be a considered alterative in developing a rough test price, it provides a weak form of market comparison for business value; relying solely on this approach poses inherent problems. However, the rule of thumb approach typically employs a multiple of cash flow (or EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization) and/or a multiple of revenues. Business valuation is the act or process of determining value of a business enterprise or ownership interest therein. Valuation of a security interest in a closely held business is a difficult process due to the lack of an active free trading market. Because of the absence of such a market, an underling notion in valuing closely held businesses is found in the investment value principle. The principle suggests the purchase of an equity interest in a closely held business should be viewed like any other investment. In essence, the “investor” not only expects to receive the initial investment back, but also receive a fair return on the investment commensurate to the risk incurred. The investment value principle can be express as a formula, illustrated as follows: Investment Value Principle Benefit Value = Risk Hodges & Hart, LLC Page 1 Certified Public Accountants Article: Placing value on your business Where, Value = the investment value of the business (present value).
    [Show full text]
  • Control Premiums and Minority Discounts
    Advanced Discounts and Premiums CONTROL PREMIUMS/MINORITY DISCOUNTS CHAPTER TWO CONTROL PREMIUMS AND MINORITY DISCOUNTS Chapter Objectives 1. Identify the advantages of maintaining a controlling equity interest in a privately held enterprise. 2. Recognize the factors that influence various levels of control. 3. Differentiate between fundamental arguments both for and against the use of control premiums. I. INTRODUCTION Of all the intrinsic characteristics related to an equity interest, arguably none may be more important than the element of control. Widely accepted theory within the business valuation community holds that an investment in a privately held company is worth the present value of all of the future benefits inuring to the holder of that equity interest. Clearly, then, if the equity holder has a control position, he or she can accelerate the receipt of those future benefits and via management and operational initiatives, take direct steps to enhance the future benefits—or at least the probability that they will be generated. On the other hand, a minority or non-controlling position in a privately held company is generally held at the great risk of being subject to the judgment, ethics, and management skills of the control shareholder(s). Depending on a number of items, the impairment of value can be significant in this circumstance. It is not proper to use the term minority discount in all cases. A minority discount is a discount for lack of control applicable to a minority interest. A discount for lack of control is an amount or percentage deducted from the subject pro rata share value of 100% of an equity interest to compensate for the lack of any or all powers afforded a control position in the subject entity.
    [Show full text]
  • Application of Share-Price Discounts and Their Role in Dictating Corporate Behavior: Encouraging Elected Buy-Outs Through Discount Application
    WLR43-1_RABBAT_EIC_FINAL_11-3-06 11/25/2006 4:42:21 PM APPLICATION OF SHARE-PRICE DISCOUNTS AND THEIR ROLE IN DICTATING CORPORATE BEHAVIOR: ENCOURAGING ELECTED BUY-OUTS THROUGH DISCOUNT APPLICATION ROBERT A. RABBAT ∗ Introduction......................................................................................108 I. Shareholder Oppression ...........................................................109 A. The Close Corporation....................................................109 B. Reaction to Oppressive Behavior ...................................110 C. Reaction of the Controlling Shareholder ........................112 i. Action for Involuntary Dissolution...........................113 ii. Election to Buy-Out the Minority Shareholder.........114 iii. The Cash-Out Merger ...............................................114 II. When is Fair Value Relevant?..................................................115 A. Involuntary Dissolution Statutes ....................................116 B. The Buy-Out Remedy.....................................................118 C. Fair Value in Dissenter’s Rights (Appraisal) Statutes....119 D. Is Fair Value Identical Regardless of the Context? ........120 III. What is Fair Value?..................................................................120 A. Not Fair Market Value....................................................121 B. Fair Value is an Approximation of Fair Market Value...122 IV. Introducing Share-Price Discounts ..........................................123 A. Minority Discounts.........................................................124
    [Show full text]
  • Business Breakups: Terminating Ownership Interests in Closely Held Businesses Robert J
    Shareholder Litigation Insights Business Breakups: Terminating Ownership Interests in Closely Held Businesses Robert J. McGaughey, Esq. In the current market, liquidity is everywhere. Large banks pooled mortgages that converted illiquid mortgage notes into liquid securities. Buying and selling stocks is easier and less expensive than ever. However, one investment class that has not seen increased liquidity is investments in closely held businesses. Although these investments may provide owners with pride, a job, or above-market returns, investments in closely held businesses are among the least liquid investments available. Forensic analysts, legal counsel, business owners, and the Internal Revenue Service are often concerned with how quick, how easy, at what price, and at what cost, the owner of a noncontrolling ownership interest in closely held company can sell his or her shares? This discussion presents some of the more common methods available to both controlling owners and noncontrolling owners to sell or otherwise dispose of their investment in the closely held company. As summarized throughout this discussion, there are limited methods for noncontrolling owners to cash out of their investment in a closely held company. Most methods available to noncontrolling owners involve litigation, which can be costly and can involve an uncertain outcome. NTRODUCTION Throughout this discussion, Oregon is used to I provide illustrative examples of methods to termi- When owners of minority interests become dissatis- nate ownership interests in closely held businesses. fied with those in corporate control of a publicly trad- Every state has unique statutes and case law with ed corporation, those owners can simply sell their regard to terminating ownership interests in closely shares and immediately terminate their relationship held businesses.
    [Show full text]
  • CLE-Book Quantification & Application of Valuation Discounts
    Attorney CLE Series Quantification & Application of Valuation Discounts UNDERSTANDING THE USES AND MISUSES OF DISCOUNTS FOR LACK OF CONTROL AND LACK OF MARKETABILITY October 26, 2011 Presented by the Business Valuation Services Group IRS Circular 230 Notice To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this presentation is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommend- ing to another party any transaction or matter addressed in this presentation (or in any attachment). This presentation is intended only for the participant. It may contain information which is confidential. If you are not a registered participant, you are hereby notified that any disclosure, copying, distribution, use, or any action or reliance on this presentation is strictly prohibited. Attorney CLE Series – October 26, 2011 Robert J. Grossman, CPA /ABV , ASA , CVA , CBA ob heads our firm’s Tax and Business Valuation Groups. He brings extensive Bexperience in tax and valuation matters that affect businesses, both public and private, as well as the stakeholders and owners of these businesses. The breadth of his involvement encompasses the development and implementation of innovative business and financial strategies designed to minimize taxation and maximize owner wealth. As his career has progressed, Bob has risen to a level of national prominence in the business valuation arena. His expertise in business valuation is well known, and Bob is a frequent speaker, regionally and nationally, on tax and valuation matters.
    [Show full text]
  • 14-1 Dishing the Dirt on Planning for Real Estate
    DISHING THE DIRT ON PLANNING FOR REAL ESTATE INVESTORS Farhad Aghdami1 Williams Mullen, P.C. Richmond, Virginia I. INTRODUCTION. A. Real Estate Owners and Family Businesses. 1. Real estate owners share all of the problems of the family business owner, in addition to the unique problems of owning real estate. However, real estate presents some opportunities that other family businesses do not share. 2. There are three basic goals of estate and gift tax planning for real estate: (a) the reduction of estate and gift taxes upon transfer; (b) the deferral of the estate and gift tax burden; and (c) the provision of the necessary liquidity to pay the taxes imposed on an illiquid asset. 3. Furthermore, while taxes cannot be ignored when planning for real estate, additional goals for the real estate owner, which can be as important as tax planning, include (a) creditor protection, (b) retention of control over the real estate by the client, (c) management succession, and (d) economic support of the family. B. Valuation Discounts. The estate planning goals means that the planner for a real estate owner will be grappling with the discounts in valuation available to limited partnerships and limited liability companies, since the real estate owner will already be using these entities for business purposes. These discounts are much more easily obtained for the real estate owner, in light of the real estate assets held in the entity (as opposed to passive stock portfolios), but the extent of these discounts will still be subject to attack by the Service. C. Management Succession.
    [Show full text]
  • MINORITY and LIQUIDITY DISCOUNTS - an UPDATE Canadian Institute of Chartered Business Valuators (CICBV) James P
    MINORITY AND LIQUIDITY DISCOUNTS - AN UPDATE Canadian Institute of Chartered Business Valuators (CICBV) James P. Catty © 1995 Our subject this evening, Minority and Liquidity Discounts, is one that.in recent years has attracted much attention. Richard Wise, a past president of the CICBV, spoke on the subject at the 1990 Vancouver conference, and Joel Adelstein, another past president, summarized the current position last June at the Quebec City Conference. In between, the Business Valuation Review has published contributions by John D. Emory (December 1990), Mary Ann Leach (March 1991), David W Simpson (March and June 1991) and William C. Herbert, Patrick K. Schmidt and Robert J. Strachota (September 1992). In preparing this paper, I have used all their published works, as well as one Canadian study everyone seems to have overlooked. This is "The Feasibility of Implementing Minority Discount Factor Guidelines in the Valuation of Minority Interest Shareholdings in Private Corporations"; it was released by Deloitte, Haskins & Sells ("DH & S" now Deloitte & Touche), in October 1978. At that time, I was managing the DH & S valuation group, and supervised the study; unfortunately, I and the principal researcher left the firm shortly afterwards, and the study seems to have been totally forgotten. Even though it has how reached the impossible teens, its conclusions appear still valid fourteen years later. Before looking at our subject, I must confess a certain bias. I started business valuations in the mid 1950,s. The first I undertook in Canada related to supporting the capitalized costs of a uranium mine, using a Discounted Cash Flow method.
    [Show full text]