Valuation Needs

Solution

A California-based company that franchises a unique dental equipment servicing process required a valuation to establish the sale price of the company.  Complicating the valuation was the fact that the demand for franchises far exceeded territories available and the company was in business a short time.

We met with a number of the franchisees, suppliers and customers and ascertained a fair value for the company after considering the future potential.  The sale was a success, and the company continued to expand and was recognized by Entrepreneur’s Magazine as America’s best franchise.

 A Delaware-based clothing manufacturer requested that we render a second opinion on the valuation they were relying on to set the price for the shares held by the ESOP.  The $1 billion revenue Company has a unique patented product that allowed the company to charge a 50% premium for its products.

 We opined that the share price did not properly reflect the value of the patent and the premium the company was able to charge for its products.  The trustees of the ESOP and management agreed to have us render a second opinion on future valuations.

 America’s largest and oldest domestic pottery manufacturer required an independent valuation to refute a valuation that management contented was inaccurate.

We valued the West Virginia-based company and verified that management’s contention that foreign competition and capital expenditures were not sufficiently considered in the initial valuation.

 A manufacturer of wooden and aluminum  baseball bats required a valuation for planning purposes.  The company was concerned that prior valuations did not properly address the effect on shareholder value of the potential banning of lightweight aluminum bats in high school and college baseball.

We valued the company and addressed the impact on value assuming no change in high school and college rules and assuming change in rules.

 A publicly traded discount mail-order clothier required a valuation for estate planning purposes.

The shareholder, at the time of his death, held a significant interest in the company.

 We valued the holdings and concluded that a blockage discount was appropriate.  Despite the fact that blockage discounts are rare and unpopular with the IRS, we were able to justify the discount via extensive research into trading history and case law.

Limited partners in a Family Limited Partnership  (“FLP”) requested a valuation of their interest for gifting purposes.  The FLP held investments in complex partnerships managed by Kohlberg Kravis and Roberts (“KKR”), the investment bankers who made their name in the leverage buy-out of RJR Nabisco.

 We valued the interest and addressed all the appropriate KKR limitations.  In the course of the valuation, we had to address the value of privately held companies such as Evenflo, Spalding and Borden’s.

 The nation’s largest independent oil and gas-drilling contractor required a valuation for planning purposes.

 We valued the Pennsylvania-based company assuming different price ranges for natural gas, which allowed the company to plan without incurring additional valuation fees every time there was a change in market price.

 A Pennsylvania-based manufacturer of resins required a valuation for planning purposes.  One of their concerns was the effect on value of environmental uncertainties.

 We valued the 75-year-old company and opined on the value based on various environmental scenarios.

 The attorney for a well-known professional athlete required assistance in ascertaining the marital estate and structuring a settlement. Complicating the engagement was the fact that there were numerous player contracts, endorsement agreements and business interests.

 This highly publicized divorce was amicably settled to the satisfaction of both parties.

 America’s largest family-owned distillery required a valuation of a minority interest.  This Kentucky based company controls over 10% of the world’s supply of Bourbon.

 We valued the minority interest and arrived at a value that was acceptable to the majority and minority shareholders.  Analyzing the market information and projections concerning global consumption of Bourbon whiskey was the complex aspect of this engagement.