The Tax Court Memorandum demonstrated that the Court thoroughly studied and it appears well understood the QMDM. While the Court did not accept the expert’s 65.77% discount, the Court criticized the assumptions used, not the QMDM.
The Tax Court Memorandum demonstrated that the Court thoroughly studied and it appears well understood the QMDM. While the Court did not accept the expert’s 65.77% discount, the Court criticized the assumptions used, not the QMDM.
The quoted unit price of a publicly traded security is sometimes not definitive of fair market value for a specific block of the shares or bonds. Such a condition typically arises when the subject holding has impaired marketability.
The world of fair market value is not the real world. It is a special world in which the participants are expected (defined) to act in specific and predictable ways.
A review of the 1993 paper “Market Discounts and Shareholder Gains for Placing Private Equity” by Michael Hertzel and Richard L. Smith.
A new form of business organization, the limited liability company (LLC), could present new planning opportunities for business owners.
Valuing a limited partnership interest can be complicated and time consuming. Whatever the level of complexity, careful documentation of the valuation process will benefit users of limited partnerships.
Since we are dealing with limited partnership interests, and since what can be transferred in most instances is only an assignee interest, shouldn’t there be a further discount applicable to the assignee interest?
As part of the appraisal due diligence process, information is obtained from general partners and/or managing members as well as from a variety of other sources. Such information provides a basis for the appraiser to understand the composition, operations, strategy, and governance of the entity. This article focuses on the importance of analyzing, from a valuation perspective, the reasonableness of this information.
The alternate valuation date warrants serious consideration at any time, but particularly in the current economic environment.
Under certain conditions, a GRAT can result in the transfer of wealth to family members without gift tax.
Mercer Capital has been performing complicated tax engagements for decades. In this article, we describe the processes that lead to credible and timely valuation reports. These processes contribute to smoother engagements and better outcomes for clients.
The recently enacted “JOBS Act” attempts to reduce regulatory burdens on small businesses. However, these rules offer opportunities for community banks as well.
Despite an anticipated surge of transactions within the banking industry, bank merger and acquisition activity declined in 2011.
This article discusses three ways that a loan portfolio valuation analysis is helpful to your bank when considering an acquisition.
Bank stocks ended a particularly volatile month in August 2011 on a good note. Does this stock price volatility represent a “new normal,” as banks face more macroeconomic risk?
In this article, the Mercer Capital Financial Institutions group presents an updated analysis of community banks’ performance thus far in 2011.
Is this wave of predicted merger activity finally coming to fruition? This article reviews trends in M&A activity in 2010 and highlights trends to watch for bank transactions in 2011.
After completing an FDIC-assisted transaction, the acquirer faces the task of accounting for the transaction in accordance with FASB ASC 805, Business Combinations.
In order to gauge the impact of the 2008 financial institution market trends on community banks large and small.
While most banks and their directors are generally aware of the tax benefits of an S election, there are some potential disadvantages.
Excerpted from Mercer Capital’s book, The Bank Director’s Valuation Handbook: What Every Director Needs to Know About Valuation.
This article provides a summary of capital raising transactions that have occurred in 2008 and offers insight into the financial considerations present in evaluating each capital alternative.
The majority of respondents to a recent survey presented in the January 2008 edition of Mercer Capital’s Bank Watch are expecting a difficult, if not dismal, 2008.
As the world celebrated the closing of another year on December 31,2007, many bankers hoped to soon forget one of the worst periods for bank stock performance in recent history.