Day 1 – Standards of Value: An Attorney’s Guide to Understanding Business Valuation
In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives us insight on the five areas of standards of value and shares the important roles they play in business valuation.
Episode Highlights:
Mark gives an overview of the categories associated with standards of value. (0:30)
How is fair market value defined? (0:47)
As an attorney, what attributes to fair market value do you need to be familiar with? (1:05)
How does the definition of “fair value” vary by state? (1:40)
In what context is synergy value most commonly utilized? (2:15)
What important issues do you have to consider when addressing synergy value? (2:25)
What factors are most important when it comes to investment value? (3:15)
What is intrinsic value? (3:40)
Key Quotes:
“The standards of value that you may be familiar with, are fair market value, fair value, synergy value, investment value, and intrinsic value. Today, we’re going to look very quickly at each one of these different standards.” – Mark S. Gottlieb
“The definition of fair value actually does change from state to state. So, it’s really important for you, as the attorney, to determine what the statute says, where you’re practicing.” – Mark S. Gottlieb
“What are the things that are important in investment value? There’s investment goals, investors specific criteria, and rate of return. There’s also other issues, such as strategy. And, these things are very, very specific to the seeker of valuation exercise.” – Mark S. Gottlieb
