Adjustments for controlling and non-controlling interests are a knotty tangle of subjective considerations behind a seemingly simple objective analysis. Including considerations of cash flows, goodwill, marketability, and other classic valuation gray areas, control decisions can make or break the defensibility of a conclusion of value.
In the Advanced Workshop on Control Premiums & Discounts, expert appraisers James Alerding and James Ewart provide an exhaustive four-hour look at the many pieces of information that affect, and are affected by the determination of a control premium or discount. Through case studies and live examples, this workshop will provide the most complete picture of this issue ever presented, including a consideration of professional guidelines, judicial decisions, and best practices.
Program Agenda
The purpose of a control discount or premium
Control vs. Normalization Adjustments
Prerogatives of Control
Types & Levels of Control
Entity level control:
Discounts for trapped-in capital gains (more appropriate as a $ amount)
Key person
Environmental
Pending litigation
Portfolio, conglomerate, or non-homogenous assets
Concentration of customer or supplier base
How the valuation approaches used affect the level of value
Control premiums and minority discounts are not equal
Sources for Control Premium Data
Linking the data – factors that impact premiums/discounts
Strengths & Weaknesses of the Data
Traditional Normalization Practices for Non-Controlling Interests
Other Control Issues
Blockage Discounts
Recent Cases
Holman v. Commissioner
Estate of Jelke v. Commissioner
Astleford v. Commissioner
Case Studies
FLPs or closely-held LLCS
Operating Company Case Study
Learning Objectives
Learn how to accurately and reliably identify and quantify control premiums and discounts
Learn how standard of value, valuation approach, and other simple and common changes to the valuation can affect control premiums and discounts
Learn the different types and levels of control, how each differs, and how each must be treated in the valuation process
Learn how to best find and utilize data available for control premiums and discounts
Learn which emerging trends and recent judicial decisions are reshaping the practice of assessing control premiums and discounts
Presented With:
BVR's Satisfaction Guarantee
Business Valuation Resources offers a 100% money-back guarantee on our training services. If you are not completely satisfied
with your experience, or have any feedback, please contact Business Valuation Resources at 1-503-479-8200 or
customerservice@bvresources.com.
