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Michael Gilburd -Business Valuation, Growing Value and Liquidity Realization - Part 2

Discounts and Premiums
Based on research that will be discussed in the Appraisal Report, the determination of value shall be subject to certain discounts and premiums. Once a valuation amount is determined, a Business Appraiser considers premiums and discounts. Issues of majority and minority interest deal with the relationship between the interest being valued and the total enterprise. The primary factor bearing on the value of the minority interest in relation to the value of the total entity is how much control the minority interest has over that entity. The concept of marketability deals with the liquidity of the interest, that is, how quickly and certainly it can be converted to cash at the owner’s discretion. Also, combined premiums or discounts are multiplicative and not additive.

The Process
To obtain a professionally prepared business valuation, there is a process that usually includes the following:
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Written by Michael Gilburd | Posted in TaxConnections

Michael Gilburd - Book on Business Valuation, Growing Value And Liquidity Realization

TaxConnections has recently received permission to post a series of articles from the book Business Valuation, Growing Value And Liquidity Realization written by Michael Gilburd. Over the past several decades, Michael has prepared valuations and assisted in debt and equity placements from tens of thousands to millions and hundreds of millions of dollars while working for major financial companies.

Introduction – Business Valuation, Growing Value And Liquidity Realization

Business Owners and Business Buyers: What’s the Right Value?

Most business owners have very little confidence in their own abilities to set market values for their most important assets. According to the International Business Brokers Association, most business owners simply don’t know where to turn for reliable advice in a buy or sell situation. Some turn to lawyers or accountants, others turn to stockbrokers or even friends, but the truth is that without formal training and industry standard modeling techniques, none of these professionals is qualified to set valuations on businesses of any kind. The key to protecting your assets and interests at any bargaining table is to know that your position is supported by leading edge methodologies executed with seasoned valuation expertise.
What is your business worth?
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Written by Michael Gilburd | Posted in Growing Value and Liquidity Realization