The newest issue of Value Matters™, Mercer Capital’s newsletter addressing gift and estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business, has been published.
This issue focuses on Ownership and Management Transition and includes the feature article “25 Questions for Business Owners” excerpted from Chris Mercer’s newest book Unlocking Private Company Wealth:
This article is a list of 25 questions to think about in assessing whether you as an owner are treating your business as an investment. If you are a business adviser, you can ask the questions on your clients’ behalf or, better still, in meetings with them.
Also in this issue is an article entitled “Valuation Discounts and Premiums in ESOP Valuation:”
Debate over discounts and premiums in business valuation persists. Nowhere is this truer than with the marketability discount (or DLOM). Within the ESOP community, much of the confusion over DLOMs is mitigated due to the presence of put options. However, a legacy of concern over control premiums has now become an acute issue.
There is other information included helpful to estate planners.