Demystifying Statutory Fair Value Webinar 06 28 11 Z. Christopher Mercer
Subsequent Events in Business Valuation
1. “ Valuation and Financial Forensics – Educate, Communicate, Preserve” NACVA and IBA’s Annual Consultants’ Conference Subsequent Events Academic Track and Z. Christopher Mercer, ASA, CFA present May 27-30, 2009 Boston, MA
7. Valuation Date Perspective Valuation Date Timeline Company history Industry condition Public market conditions Management team Economic conditions Competitive situation Company situation Company outlook The past is the window through which we view the uncertain future – Your Speaker Valuation is a prophecy – RR 59-60, Judge David Laro The future is hard to predict. It hasn’t happened yet – Yogi Berra
8. Valuation Date Perspective Investment Date (Funds are committed) Timeline Company history Industry condition Public market conditions Management team Economic conditions Competitive situation Company situation Company outlook Regardless of what happens after the investment, the investor gets the results that the market provides What will be the investment result? Price will go up Price will go down Price will stay about the same
9.
10.
11.
12.
13.
14.
15.
16.
17.
18. Future Events From the Perspective of a Valuation Date Valuation Date Timeline Company history Industry condition Public market conditions Management team Economic conditions Competitive situation Company situation Company outlook Unexpected events??? Possible events??? Reasonably foreseeable???
19.
20.
21.
22. Historical Appraisals Historical Valuation Date Timeline Company history Industry condition Public market conditions Management team Economic conditions Competitive situation Company situation Company outlook Unexpected events??? Possible events??? Reasonably foreseeable??? Report Date
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68. Noble – Appraisals Cued up for Court to examine Marketability Discount?