18
Date: Thursday, September 18, 2014
Time:
10:00am-11:40am PT / 1:00pm-2:40pm ET
Format: A BVR Webinar

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Featuring  (click image for bio)

Eric W. Nath
ASA
Eric Nath & Associates, LLC

About This Program

Conventional appraisal wisdom says that the value of a non-controlling, illiquid interest in a private company or holding company is the net equity or net asset value, discounted for lack of control and lack of liquidity. But is this how markets for these types of interests really work? What are the problems with this indirect approach, and is there a better way? In this presentation Eric Nath will systematically dismantle the conventional wisdom down to its foundation, and build a new valuation structure that is an integrated, defensible, real-world procedure that may be applied in almost all cases.

Agenda

  • How markets in private minority interests actually work
    • Research into private equity, venture capital, and other dark corners of the markets - current state of the markets and how they function
    • Implications of this research in the valuation of completely illiquid private minority interests
    • Areas for new research
  • Intersection of "fair market value" and "fair value" with actual market realities – is our goal to find a theoretical or a real value?
    • What appraisal standards say about theoretical versus real value
    • What the courts say about theoretical versus real value
  • Sources of guidance on valuing private minority interests
  • Economic analysis compared to discount analysis – sample example and the development of practical economic models
  • Conclusions

Learning Objectives

  • Compare valuation taxonomies regarding the analysis of whole companies versus the analysis of minority interests – two very different processes that are often confused by appraisers as well as the courts
  • Distinguish the importance (and practical benefits) of working in the real world versus the notional or hypothetical world
  • Compare the economic implications of discounted NAV versus the Income Approach
  • Redefine restricted stock studies based on economics rather than a factor analysis
  • Develop integrated, scientifically valid, and defensible financial models for valuing minority interests directly rather than indirectly

Single Connection Policy

Admission to this event authorizes one computer and phone connection for one location. These connections may be transferred users and/or locations. Multiple concurrent connections for a single admission registration are not allowed.

Multi-User CPE Policy

Admission to this program includes one CPE certificate for one individual. Any additional listeners requesting CPE must pay a processing fee assessed at the completion of the online CE survey for this course.

CPE Processing Fees may be bypassed by entering a valid, unused CPE Authorization Code (for single event purchasers) or by logging into BVR's website (for subscribers to BVR's Training Series).

CPE Information

Prerequisites: Knowledge of Business Valuation
Program Level: Advanced
Preparation Required: None
Delivery Method: Group Internet-Based
Recommended CPE: 2 Credit Hours (Specialized Knowledge & Applications)


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