Lee Co-Authors Article Published in July/August 2013 Issue of The Value Examiner

Mercer Capital Managing Director Timothy R. Lee, ASA recently co-authored an article that was published in the July/August 2013 issue of The Value Examiner, a publication of The National Association of Certified Valuators and Analysts (NACVA)

The article, titled “16 Mistakes to Avoid in Valuations (According to Tax Court Decisions)” was written with L. Paul Hood, Jr., JD, LLM.

Business valuation textbooks, training manuals, and conference presentations may do a good job of teaching the right ways to conduct valuations. But in some respects, the most authoritative teacher of what is right and, just as importantly, what is wrong is the decision of the court in a dispute over the value of a privately held business or shares thereof. In this article, we have collected 16 examples of mistakes made by valuation experts, as reported in federal courts in tax decisions. It is important to note that there are two sides to every story, and courts do not always get it right. For this reason, we do not name any valuators in this collection of mistakes to avoid.

Click here to view a PDF excerpt of this article

This article was adapted from Chapters 17-18 of A Reviewer’s Handbook to Business Valuation, by L. Paul Hood, Jr., and Timothy R. Lee (John Wiley & Sons, New Jersey, 2011). To learn more about this book, visit www.bvreviewershandbook.com.