Microsoft Word peachtree case study

• The nature and magnitude of non‐operating assets

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PEACHTREE-CASE-STUDY

• The ability to integrate the acquiree into the acquirers business orb bdistribution channels 9

• The nature and magnitude of non‐operating assets
• The nature and magnitude of discretionary expenses
• The perceived quality of existing management
• The nature and magnitude of business opportunities which are not currently
being exploited
• The ability to integrate the acquiree into the acquirers business orb bdistribution channels
9

Since there is no analytical way to determine how much of the control premium is attributable to “non‐control” factors, valuators generally accept these studies at
7
Trugman, Gary R. 2002. Understanding business valuation ‐ A practical guide to valuing small to medium‐sized businesses, 2nd Edition. New York American Institute of Certified Public Accountants. p. 365.
8
Pratt, Shannon P, Robert F. Reilly, and Robert P. Schweihs. 2000. Valuing a business The analysis and appraisal of closely held companies, 4th edition. New York, NY McGraw‐Hill. p. 349.
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Pratt, Shannon P, Robert F. Reilly, and Robert P. Schweihs. 2000. Valuing a business The analysis and appraisal of closely held companies, 4th edition. New York, NY McGraw‐Hill. p. 349.

Page 26 of 141 face value and then take into consideration the factors affecting the magnitude of control premiums listed above. The analysis of the subject interest is integrated into the development of a control premium if such a valuation adjustment is deemed appropriate. A control premium will be considered and discussed in Section 5.5.1 Control Premium – Subject Interest.

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