Mercer Capital has released a new whitepaper, How to Value Your Regional or Short-Line Railroad Company. This whitepaper, authored by Grant M. Farrell, ASA, CPA, ABV, CFF, vice president, provides an informative overview regarding the valuation of businesses operating in the regional or short-line railroad industry.
In the railroad industry, Class I public company multiples are often used to estimate the fair market value of private railroads classified as Class II or Class III. In almost every case, this method significantly misrepresents the fair market value of private railroad operations.
“In this whitepaper,” explains Grant, “we cover why public company multiples can be misleading and discuss the mechanics of valuation used by professional business appraisers. We do so in order to provide our clients with the knowledge and vocabulary necessary to be an informed consumer of business valuation services and, more importantly, to understand the value of their regional or short-line railroad company.”
Mercer Capital is a national business valuation firm that provides corporate valuation and financial advisory services to companies in the regional and short-line railroad industry. Through our broad range of services, we have provided thousands of valuations, which are well-reasoned and thoroughly documented. We understand the unique position of regional lines as well as the broader transportation industry.
To read and download How to Value Your Regional or Short-Line Railroad Company, click here.