Taking Marketability Discounts on Controlling Interests

In a business valuation context, the term “marketability” refers to the ability to quickly convert property to cash at minimal cost. While publicly traded stocks are readily marketable, interests in private companies typically require substantial time,...

A Direct Way to Save Time and Money

When you hear the term “direct deposit,” you may think about payroll but that is not the only way businesses can use this time and money-saving service. What about the checks you write for expense reimbursements or commissions? If you operate a...

How Elements of Control Affect Value

We’ve all heard the phrase that the “whole is greater than the sum of its parts.” But you might not know that the same theory can apply in the valuation of interests in a business. Control is Valuable When a publicly traded business is acquired in...

Using Business Value as a Benchmark

The ultimate indicator of how well a company and its management are performing is how much the company is worth. Any performance measurement or benchmarking system should include fair market value as one of its primary metrics. With public companies, it’s easy...

SERPs: Pros and Cons for Employers and Executives

If your company offers employees a qualified retirement plan, it’s probably a 401(k). But this popular option isn’t the only game in town. You may want to offer an additional retirement savings vehicle — such as a supplementary executive retirement plan...