3 Strategic Financial Questions for Family Businesses - Mercer Capital
Our family business advisory practice is focused on three strategic financial questions that weigh on family business directors.| Mercer Capital
Our family business advisory practice is focused on three strategic financial questions that weigh on family business directors.| Mercer Capital
Warren Buffett took control of Berkshire Hathaway sixty years ago. It is possible that major announcements will be made at the annual meeting.| The Rational Walk
Following "Mercer's Musings" 1-3, Mercer's Musing #4 examines the guidance found in "Procedural Guideline -2 (PG - 2) Valuation of Partial Ownership Interests" in the ASA Business Valuation Standards. Procedural Guidelines (PG) are designed to provide more detailed guidance for consideration by business appraisers than found in the base standards themselves. There is a great deal more to valuing illiquid minority interests than "guessing" at a marketability discount based on vague referenc...| Chris MercerChris Mercer
In Mercer's Musings #3, I address this basic quantitative derivation of marketability discounts for Companies A and B. As valuation is a function of expected cash flows, growth, and risk, any methodology failing to account for these factors is inadequate. Through a hypothetical comparison of two identical corporations with differing minority interests, I emphasize the value of a nuanced approach to valuation, suggesting that reliance on outdated averages from restricted stock studies is insuf...| Chris MercerChris Mercer
