Precision Economics LLC: Valuation Services
 
 
 
   
Services

VALUATION


Estate Tax : Investment : Damages : Business Valuation : Intellectual Property Valuation : Executive Compensation

Precision Economics conducts valuations for investment, litigation, and tax purposes. With experience in over 75 cases that span a variety of industries from pharmaceuticals to telecommunications, Precision Economics has performed valuations that considered voting rights, small company discounts, estate tax, impacts of contractual terms, and the appropriate risk premium. Recent valuations include executive compensation, family limited partnerships, purchase price allocations, patent donations, and privately held companies.

Valuation disagreements occur in many venues, including tax authority audits, sale/purchase negotiations, arbitration hearings, and courtrooms. Many of our findings have been used privately or in negotiations. In addition, our valuation projects have led to testimony in Delaware Chancery Court, U.S. Tax Court, and in various arbitration forums. While the majority of our projects are not a matter of public record, our research has been reported in the Wall Street Journal, Newsday, Bloomberg Television, Fortune and CNN. We have written in numerous publications and spoken at several seminars on our experience as business valuation consultants and executive compensation consultants. Some of our recent cases include:

  • In 2010, Precision Economics submitted affirmative and rebuttal economic reports in Australia opining on the arm's length compensation for a multi-national CEO;
  • Precision Economics has been engaged on a number of occasions to allocate the intangible value of an acquired business; and
  • Precision Economics has been engaged to value several of the largest privately held businesses in the United States.

articles   presentations

"An Examination of Goodwill Valuation Methodologies," Corporate Governance Advisor, Vol. 10, No. 4, July/August 2002, pp. 35-40.

"Valuation Evaluation: How to Determine the Size of Interest in an LLC," CFO.com, Ask the Experts, August 31, 2001. Link

"Should a Blockage Discount Apply? Perspectives of Both a Hypothetical Willing Buyer and a Hypothetical Willing Seller," Business Valuation Review, Vol. 19, No. 1, March 2000, pp. 3-9.

"Does a Small Firm Effect Exist when Using the CAPM? Not Since 1980 and Not when Using Geometric Means of Historical Returns," Business Valuation Review, Vol. 18, No. 3, September 1999, pp. 104-111.

"The Control Premium: A Strict Monetary Value Approach," Business Valuation Digest, Vol. 5, No. 1, June 1999, pp. 12-15.

"Using Average Historical Data for Risk Premium Estimates: Arithmetic Mean, Geometric Mean, or Something Else," Business Valuation Review, Vol. 17, No. 4, December 1998, pp. 136-140.

"Minority Interests in Market Valuation: An Adjustment Procedure," Business Valuation Review, Vol. 16, No. 1, March 1997, pp. 27-31.

"Multiple Approaches to Valuation: The Use of Sensitivity Analysis," Business Valuation Review, Vol. 15, No. 4, December 1996, pp. 157-160.


Economics of Mass Tort: Lead Paint Gerson Lehrman Group Seminar, New York, NY, November 16, 2005.

Profitability Analysis of NYSE Trading Specialists American Enterprise Institute Seminar Series, Washington, DC, October 8, 2003.

Valuation Concepts in Family Limited Partnerships resentation to Internal Revenue Service Northeast Engineers, Fort Monmouth, New Jersey, August 30, 2000.

The Discounted Cash Flow Method and Other Valuation Concepts Presentation to IRS Kansas and Missouri District Estate & Gift Tax attorneys, managers, and litigators, Kansas City, Kansas, October 4, 1999.

The Discounted Cash Flow Method and Other Valuation Concepts Presentation to IRS New York District Estate & Gift Tax attorneys, managers, and litigators, New York City, August 16, 1999.

"Business Valuation" Closed Circuit Broadcast to IRS Estate and Gift Tax Attorneys, New Carrolton, MD, September 23, 1997.

Valuation and Finance Principles Applied to Transfer Pricing A presentation to IRS and Treasury Department economists, Washington, D.C., September 11, 1997.


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