Appraisal Economics Inc. valued an outperformance plan (OPP) for a publicly traded REIT for quarterly financial reporting purposes. OPPs and long-term incentive plans (LTIP) are forms of stock-based incentive compensation that allow executives and employees to share in the incremental value created for shareholders by share price appreciation and dividends during a defined performance period. Unlike plain vanilla stock options, OPPs and LTIPs are more customizable, allowing a company to set absolute or relative performance goals. Examples include achieving specified levels of total shareholder return relative to a benchmark stock index or a defined peer group of other publicly traded companies. Appraisal Economics Inc. helps companies design, value, and assess the interim performance of these derivative securities.

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Appraisal Economics Inc. valued certain hardware/software products, and related technical support services owned by a major U.S. professional sports league. The league received discounts off the list prices of certain products and support services in exchange for sponsorship benefits. We determined the reasonableness of these discounts and estimated the fair value of the products and support services by comparing the discounts negotiated by the league to typical discounts offered to the supplier’s other contract partners. Appraisal Economics was engaged to value the hardware/software and related support services for financial reporting purposes.

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Appraisal Economics Inc. has completed a valuation of a biomass facility in the United States. The process steam and process water generated by the plant are sold to two adjacent chemical producers under energy supply agreements. The plant’s assets include one biomass-fired industrial boiler that acts as the primary source of steam, and two natural gas-fired package boilers that are used during periods of higher demand. Appraisal Economics was engaged to estimate the fair market value of the plant for bank financing purposes.

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Appraisal Economics Inc. valued the legal right to receive court-ordered restitution due to the victim of a Ponzi scheme. The operator of the Ponzi scheme was ordered to pay restitution to his victims after his release from prison. Appraisal Economics reviewed the legal memoranda of the U.S. District Court and interviewed representatives of the court and the attorney who represented the architect of the scheme. We considered restitution payments made to date, and we projected future payments and an appropriate discount rate to reduce the restitution payments to present value. Our analysis was based, in part, on our previous experience valuing the right to receive a portion of assets recovered related to the liquidation of Bernard L. Madoff Investment securities LLC.

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Appraisal Economics Inc. valued all the outstanding stock options of a national apparel and home goods retailer to facilitate the company’s option exchange. In conjunction with a debt recapitalization and cash dividend on the underlying common stock leading up to its initial public offering, the company cancelled all previously issued stock options and issued new options with lower exercise prices and otherwise identical terms. Appraisal Economics Determined the aggregate value of the options immediately before and after the option exchange. The concluded fair values were used to measure the compensation expense of the option exchange for financial reporting purposes.

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Appraisal Economics Inc. valued a 501c(6) not-for-profit that organizes an annual series of events for the advertising industry. The company was founded a decade ago to serve as an industry trade group, and was considering converting to for-profit tax status. We were engaged to value the company, and our report was presented to the Office of the New York Attorney General to ensure the terms of the not-for-profit’s conversion to for-profit status were appropriate. We worked with the company to develop financial projections, and we valued the company using an income approach based on those financial projections. We also reviewed sales of not-for-profit and for-profit companies that were reasonably similar to the client.

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Appraisal Economics Inc. has completed a valuation of a commercial rooftop photovoltaic solar installation located in Oregon. Electricity generated is sold to the local power grid via a long term power purchase agreement. The installation’s assets include photovoltaic solar modules, inverters, monitoring equipment, and mounting hardware. Appraisal Economics was engaged to estimate the cost basis that is eligible for the federal government investment tax credit and for the Section 1603 grant.

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Appraisal Economics Inc. valued a major league baseball franchise for litigation purposes, including an assessment of the impact of its new stadium. The guideline transaction method was used to determine the franchise value, while an income approach was employed to estimate the impact of the new stadium. Lack of control and lack of marketability were also factors bearing on the value of the equity interests in the franchise, which comprised voting and non-voting shares. Contingent liabilities were a significant factor impacting the total franchise equity value.

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Appraisal Economics Inc. valued a portfolio of copyrights, trademarks, and other intellectual property covering a collection of fictional characters. These characters have been the subject of comics, cartoons, graphic novels, TV shows, movies, and video games. The collection includes male and female characters ranging from superheroes and anthropomorphic animals to everyday-type people. With over 1 billion comics sold in a variety of languages over more than half a century, the characters continue to enjoy popularity around the world and across multiple generations of fans. Appraisal Economics was engaged to value the intellectual property for management planning purposes.

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Appraisal Economics Inc. has completed the valuation of an institutional trading company linking the world’s top global asset managers. Acting essentially as a stock exchange, the company is the global leader in large block trading. We valued the common equity of this privately held trading business, valued the company’s stock options for new stock option grants, and valued the company’s outstanding stock options for an option exchange.

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