Microsoft Word peachtree case study


• Ability to set policy and change the course of the company



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PEACHTREE-CASE-STUDY
• Ability to set policy and change the course of the company
• Ability to make (approve) acquisitions or divestitures
• Ability to liquidate the company or sell the assets, either in whole or in part
• Authority to declare and pay dividends
• Authority to effect major operational change of the company
Authority to establish, revise or execute buy‐sell agreements
In establishing a DLOC, Revenue Ruling 93‐12 should also be considered if the interest being transferred results in a control block of shares amongst family

Page 27 of 141 members in the subject entity. In summary, this revenue ruling states that a minority discount will not be disallowed solely because a transferred interest, when aggregated with interest held by family members, would be part of a controlling interest. There are no accepted methods for direct determination of DLOCs. Generally, the
Mergerstat Review studies calculating control premiums (cited previously in Section 2.6.1 Control Premiums) are used to calculate implied discounts for lack of control if the subject interest, in fact, requires a DLOC to arrive at a value on an equivalent basis to the interest being appraised. A DLOC will be considered and discussed in Section 5.5.2 Discount for Lack of Control – Subject Interest. Appropriate empirical studies and analyses will be Included in this discussion as required.

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