Appraisal Economics Inc. has conducted an analysis of fractional interests in real estate located in the southern United States. The fractional interests were held as tenants-in-common. Tenant-in-common interests are held by two or more owners each having an undivided interest. In this type of ownership, the interests are not necessarily equal in size and no one owner has unilateral control of the property. Accordingly, each tenant effectively holds a non-controlling and illiquid interest in the underlying real estate. Appraisal Economics applied appropriate lack of control and lack of marketability discounts to the pro rata values of the tenant-in-common interests and determined the fair market values of the interests for estate tax purposes.

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Appraisal Economics Inc. has valued the equity of a manufacturer and distributor of dairy products. The company distributes cheese and dairy products to national supermarket chains, grocery stores, and local bodegas throughout the eastern United States. The company produces a wide range of cheeses and dairy products including fresh, natural, aged, and melting cheeses, creams, drinkable yogurts, and desserts. Appraisal Economics Inc. valued the common equity of the company for gift and estate tax planning purposes. Our analysis included determining the business enterprise value and equity value of the company using the income approach and discounting the per share value for lack of control and lack of marketability to determine the fair market value of the company’s equity.

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Appraisal Economics Inc. has valued a medical group consisting of six medical practices affiliated through one of the largest integrated healthcare delivery systems in the Northeast. The six practices are integrated with a management services organization (“MSO”), which administers most non-clinical aspects of the practices, including billing, collections, employment of non-clinical staff, and so forth. The MSO also owns most of the practices’ property and equipment, and leases the office space used by the practices. Appraisal Economics was engaged to determine the fair market value of the medical practices for financial reporting purposes related to their acquisition.

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Appraisal Economics Inc. valued dozens of privately held debt instruments due from companies, trusts, and high net worth individuals with an aggregate value of more than $40 million. Some of the debts were secured by specific collateral including interests in commercial real estate. Other promissory notes were only protected by the debtors’ general assets and creditworthiness. Appraisal Economics performed a detailed credit analysis to determine the appropriate discount rate for each security, and we calculated the fair market values of the underlying assets for estate tax purposes.

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Appraisal Economics Inc. valued rights to receive a portion of royalties on sales of one of America’s oldest and best known brands of oral care products. The royalties are paid by a $200 billion healthcare conglomerate, and are based on a contract originally signed in the 1800s. Appraisal Economics determined the fair market value of the royalties for estate tax purposes.

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Appraisal Economics Inc. valued a non-controlling interest in a holding company that owns a minority interest in a privately held international conglomerate that is headquartered in Russia. The operating company has several dozen subsidiaries in Europe and Asia that specialize in oil and gas, construction, telecommunications, and finance. Our valuation included analyzing the recent sale between third parties of shares of common stock in the underlying operating company. To determine the current value of the operating company’s common stock, we adjusted for changes in the company’s financial performance, industry and economic conditions, and currency exchange rates. The concluded value of the interest in the holding company that owns the conglomerate’s shares reflected incremental discounts for lack of control and lack of marketability. Our valuation was used for gift and estate tax planning purposes.

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Appraisal Economics Inc. has conducted a goodwill impairment analysis for a leading manufacturer of synthetic building materials. The company produces decking, railing, and lighting innovations, bathroom partitions, and a variety of other synthetic building materials and products designed to replace wood, metal, and other traditional materials for commercial and residential applications. Appraisal Economics valued the business enterprise to assess whether the company’s goodwill was impaired under ASC 350. Once goodwill is placed on the balance sheet due to an acquisition it must be tested at least annually for impairment.

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Appraisal Economics Inc. has conducted a purchase price allocation of a fully-integrated paper mill in the Pacific Northwest. A private equity firm acquired the producer of containerboard, kraft and specialty papers, unbleached kraft pulp, and corrugated packaging for total consideration in excess of $100　million. The company operates a pulp and paper mill that processes raw timber and recycles old cardboard boxes and sells its products primarily in North America and Asia. Appraisal Economics allocated the purchase price among the financial, tangible, and intangible assets of the company. The assets included real property in two countries, machinery and equipment, favorable power purchase agreements, trademarks, customer relationships, and goodwill. Once goodwill is placed on the balance sheet due to an acquisition, it is tested at least annually for impairment.

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Appraisal Economics valued a permit that conferred the rights to use patented technology underlying a unique coal gasification process. The technology provides the flexibility for the use of either conventional fossil fuel or alternative feedstocks such as biomass. This technology will be incorporated into a larger facility that will ultimately produce transportation fuels and electricity for sale into wholesale markets. The income approach was utilized, including an analysis of arm’s length royalty rates for similar technologies. The results of our study were used for financial reporting purposes.

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Appraisal Economics Inc. has conducted a purchase price allocation of a North American-based integrated manufacturer and wholesaler of branded and private label paper products. The company produces and sells paper towels, bathroom tissue, and napkins for the “at-home” and “away-from-home” markets. A publicly traded company purchased the business for cash and restricted shares. Appraisal Economics valued the restricted shares to determine the fair value of the consideration paid for the company, and then allocated the purchase price among the financial, tangible, and intangible assets of the company. The assets included machinery and equipment, contracts, a license to use the seller’s trade name, a non-compete agreement, customer relationships, and goodwill. Once goodwill is placed on the balance sheet due to an acquisition, it is tested at least annually for impairment.

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