Standards of Value - Theory and Applications

Informationen zum Autor JAY E. FISHMAN, FASA, is coauthor or contributing author of seven professional books. He is a managing director of Financial Research Associates, a regional business valuation and forensic accounting firm. He has conducted hundreds of business valuations and has qualified as an expert witness and provided testimony in several federal and state courts. SHANNON P. PRATT is one of the most successful and respected authors in the field of business valuations. He has written many industry standard texts. Over a distinguished career spanning more than four decades, he has performed valuation engagements for M&As, ESOPs, and numerous other purposes. Dr. Pratt is CEO of Shannon Pratt Valuations, a business valuation firm located in Portland, Oregon. WILLIAM J. MORRISON, CPA, ABV, CFF, is a partner at WithumSmith+Brown, a regional mid-Atlantic CPA firm, and is frequently appointed by the courts as a valuation expert. He has published articles on forensic accounting and valuation. He is a former FBI agent and has conducted thousands of forensic accounting investigations and business valuations of closely held companies. Klappentext Expert direction on interpretation and application of standards of valueWritten by Jay Fishman, Shannon Pratt, and William Morrison--three renowned valuation practitioners--Standards of Value, Second Edition discusses the interaction between valuation theory and its judicial and regulatory application. This insightful book addresses standards of value (SOV) as applied in four distinct contexts: estate and gift taxation; shareholder dissent and oppression; divorce; and financial reporting. Here, you will discover some of the intricacies of performing services in these venues.* Features new case law in topics including personal good will and estate and gift tax, and updated to cover the new standards issued since the first edition* Includes an updated compendium discussing the standards of value by state, new case law covering divorce, personal goodwill, and estate and gift tax, and coverage of newly issues financial standards* Shows how the Standard of Value sets the appraisal process in motion and includes the combination of a review of court cases with the valuator's perspective* Addresses the codification of GAAP and updates SOV in individual statesGet Standards of Value, Second Edition and discover the underlying intricacies involved in determining "value." Zusammenfassung Expert direction on interpretation and application of standards of value Written by Jay Fishman, Shannon Pratt, and William Morrison three renowned valuation practitioners Standards of Value, Second Edition discusses the interaction between valuation theory and its judicial and regulatory application. Inhaltsverzeichnis Foreword xiii Preface xvii Acknowledgments xxi About the Authors xxv Introduction 1 Purpose 1 Every Appraisal is Unique 3 Fair Value versus Fair Market Value 4 Historical Perspective 5 Chapter Preview 8 Chapter 1: Common Standards and Premises of Value 8 Chapter 2: Fair Market Value in Estate and Gift Tax 8 Chapter 3: Fair Value in Shareholder Dissent and Oppression 9 Chapter 4: Standards of Value for Partnership and Limited Liability Company Buyouts 10 Chapter 5: Standards of Value in Divorce 12 Chapter 6: Fair Value in Financial Reporting 13 How Standard of Value Can Affect the Ultimate Conclusion of Value 13 Chapter 1 Common Standards and Premises of Value 17 Common Standards and Premises 17 Price, Value, and Cost 17 Defining a Standard of Value 19 Premises of Value 20 Common Standards of Value 21 Fair Market Value 21 Fair Value 23 Investment Value 24 Intrinsic Value 25 Book Value 27 Common Operational ...

List of contents

Foreword xiii
 
Preface xvii
 
Acknowledgments xxi
 
About the Authors xxv
 
Introduction 1
 
Purpose 1
 
Every Appraisal Is Unique 3
 
Fair Value versus Fair Market Value 4
 
Historical Perspective 5
 
Chapter Preview 8
 
Chapter 1: Common Standards and Premises of Value 8
 
Chapter 2: Fair Market Value in Estate and Gift Tax 8
 
Chapter 3: Fair Value in Shareholder Dissent and Oppression 9
 
Chapter 4: Standards of Value for Partnership and Limited Liability Company Buyouts 10
 
Chapter 5: Standards of Value in Divorce 12
 
Chapter 6: Fair Value in Financial Reporting 13
 
How Standard of Value Can Affect the Ultimate Conclusion of Value 13
 
Chapter 1 Common Standards and Premises of Value 17
 
Common Standards and Premises 17
 
Price, Value, and Cost 17
 
Defining a Standard of Value 19
 
Premises of Value 20
 
Common Standards of Value 21
 
Fair Market Value 21
 
Fair Value 23
 
Investment Value 24
 
Intrinsic Value 25
 
Book Value 27
 

Common Operational Premises Underlying the Standard of Value 28
 
Going Concern 28
 
Liquidation Value 29
 
Fair Value in Alternative Contexts 30
 
Fair Market Value in Alternative Contexts 31
 
Standards of Value in the International Context 32
 
Summary 33
 
Chapter 2 Fair Market Value in Estate and Gift Tax 35
 
Introduction 35
 
Common Definitions of Fair Market Value 36
 
History of Fair Market Value 37
 
United States v. Fourteen Packages of Pins 38
 
Elements of Fair Market Value 41
 
Price at Which a Property Would Change Hands 42
 
Willing Buyer 44
 
Willing Seller 54
 
No Compulsion to Buy or Sell 59
 
Reasonable Knowledge of Relevant Facts 63
 
Common Discounts 80
 
Summary 87
 
Chapter 3 Fair Value in Shareholder Dissent and Oppression 89
Gilbert E. Matthews and Michelle Patterson
 
Fair Value as the Standard of Value in Dissent, Oppression, and Entire Fairness Cases 89
 
The Appraisal Remedy for Dissenting Shareholders 94
 
History and Overview of the Appraisal Remedy 94
 

Appraisal Rights Today 97
 
Appraisal Rights in Publicly Traded Corporations: The Market Exception 99
 
Fair Value Can Be Less Than Arms'-Length Price 102
 
The Oppression Remedy 106
 
Development of the Oppression Remedy 106
 
Context of Oppression Remedy 107
 
Dissolution as a Remedy for Oppression 110
 
Shareholder Buyouts as an Alternative Remedy 110
 
Examples of Oppression 116
 
Fair Value Is the Standard of Value in Appraisal and Oppression in Almost All States 121
 
Fair Value as Defined by Various Authorities and Statutes 121
 
The Valuation Date--Before the Effectuation of the Corporate Action to Which the Shareholder Objects 125
 
Valuation Date in Appraisal Cases 125
 
Valuation Date in Oppression Cases 126
 
Customary and Current Valuation Techniques 130
 
Fair Value in Delaware 139
 
Delaware Fair Value Standards 139
 
Entire Fairness in Delaware 140
 
Components of Fair Value in Delaware 144
 
Ohio's Unique and Unfavorable Standard of Value in Appraisals 155
 
Fair Value Normally Excludes Discounts and Premiums 157
 
Most States Now Reject Minority and Marketability Discounts 157
 
Levels of Value 159
 
Discounts at the Shareholder Level 160
 
The "Implicit Minor

Product details

• Authors: Fishman, Jay E Fishman, Jay E. Fishman, Jay E. (Financial Research Associates) Fishman, Jay E. (Financial Research Associates) Pr Fishman, Je Fishman, Fishman Jay E., William J Morrison, William J. Morrison, William J. (Morrison & Company) Morrison, Morrison William J., Shannon P Pratt, Shannon P. Pratt, Shannon P. (Willamette Management Associates Pratt, Pratt Shannon P.
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 17.05.2013
• EAN: 9781118138533
• ISBN: 978-1-118-13853-3
• No. of pages: 496
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; The Wiley Finance Series
• Subjects: Social sciences, law, business > Business > Management; Rechnungswesen, Bewertung, Accounting, Valuation