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Monthly Archives: April 2009

Book Distribution Announcement

By admin | Published: April 8, 2009

FOR IMMEDIATE RELEASE
The Institute of Business Appraisers ( IBA) has been selected as the exclusive distributor for the Guide to Property Tax Valuation and the Guide to ESOP Valuation and Financial Advisory Services, Second Edition Published by Willamette Management AssociatesÂ
Fort Lauderdale, Florida (March 2009) – The Institute of Business Appraisers has been named the [...]

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Inside Infomation

By Rand Curtiss | Published: April 8, 2009

My son in-law is a portfolio manager for a hedge fund. We were comparing notes on how he and I make valuation judgments, and I shared with him my information request for a standard appraisal.
He was amazed at some of the things we routinely ask for and get. As he put it, “I’d kill for [...]

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Top-Down or Bottom-Up?

By Rand Curtiss | Published: April 3, 2009

There are two theoretically correct ways to value minority business interests: top-down and bottom-up. Top-down starts with the value of 100% of the equity (enterprise value). Multiply it by the minority percentage interest and deduct a lack of control discount to arrive at marketable minority value. Bottom-up starts with a forecast of expected minority benefits [...]

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Distorted Proxies

By ibaadmin | Published: April 1, 2009

The stock market decline has distorted the public market proxy data we routinely apply to private equity valuations. Consider that:
1. Control premiums, based on recent acquisition studies, have increased
2. The risk-free rate and equity premium in the build-up model have decreased
3. Debt / equity ratios have increased
If we blindly accept these proxies, each increases the [...]

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