Consider Michael Jackson, the Empire State Building, and Myriad of Value Drivers (Part II of II) In this concluding article, the second of a two-part series, the authors conclude presenting additional illustrations that underscore their primary thesis: that in many businesses, value is illusory and there are a host of factors that are unanticipated and cannot be modeled. In this concluding article, the second of a two-part series, the authors conclude presenting additional illustrations that underscore their primary thesis: that in many businesses, value is illusory and there are a host of factors that are unanticipated and cannot be modeled.…
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Everything is Changing (Part I of II) In this two-part article, the authors present some illustrations that indicate the illusion of value of many businesses. Business appraisers have many tools to determine the value of a closely held business. So many so, that many “official” conclusions of value for the same business generate significant differences. This borne out by the normal expectation of rebuttal reports in marital and shareholder disputes, tax litigation over estate, gift and charity values of family businesses, and fair value situations. In some instances, there are multiple valuations. Many valuations are prepared to fulfill a purpose…