Real Estate Minority Discounts
Results that Stand Up
Well-Reasoned Opinions & Reliable Valuation Advice backed by scientific method & M&A transaction data
Our client roster is the best testimony to the value we provide....
-James Lisi, Owner,
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Expert testimony that withstands challenges from opposing counsel and the IRS. Value arguments that support mediation and collaborative settlement
Simple market values to put you in the ballpark for a local deal, or full support when negotiating with an experienced acquirer. Values for S-Corp conversions and spin-outs.
EMPLOYERS & ERISA TRUSTS
Sound 409a and ESOP valuations that help protect the Founders and CEO against legal threats from the DOL, IRS and employees
Credible and defendable opinions that capture all FMV discounts, backed up with economic principles and court precedents. We teach these methods at professional valuation conferences
PARTNERS & SPOUSES
Valuations reflecting an owner's position to help settle partnership and divorce matters
Discount Appraisals of alternative assets held in IRA or 401k plans that save taxes on distributions
To bring a clear, fundamentally sound finding of value to each client
When competitors' cases go to Tax Court or when negotiations fall apart over valuation, it is often because the analyst has failed to use good fundamentals. Our positions are engineered so that authorities have no choice but to consider them. Four factors set us apart - and are why we are able to produce reliable results for our clients.
First, we examine companies like a private equity investor, not like an accountant. Value is driven by cash flow, margin, growth rate, entry barriers and market. These elements explain the value of all business types - profitable, unprofitable, early stage, mature, services, retail, distribution, software, manufacturing and real estate.
Next, we use scientific method to connect data and company performance to value. Scientific method is superior to approximations using CAPM, statistics, big data, binomial lattices and differential equations that certainly take skill, but can be enormously inaccurate.
Critically important, we primarily rely on M&A data like private equity investors and business brokers do, and we flex between approaches for the situation. The typical accountant uses one long, complex formula based upon public market data. With the different market and the extra variables involved, it requires many more judgements. Business brokers find these types of appraisals to be unreliable because it is an apple-to-oranges comparison. We do too.
Fourth, unlike the formula approach, we examine inventory, contingencies and owner issues that are key for real estate partnerships, retail, distribution, and settling equity holder disputes.
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