Microsoft Word peachtree case study

• Customer or supplier premium (e.g., enforceable long‐term attractive contract

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PEACHTREE-CASE-STUDY

• Customer or supplier premium (e.g., enforceable long‐term attractive contract
terms)
• Customer or supplier discount (e.g., risk of loss/non‐renewal of key customers
or suppliers although this is many times factored into the business risk
assessment as market multiples or discount rates are developed for the subject
business
These entity‐level adjustments, when used explicitly (i.e., not factored into any other analysis as the basis fora valuation calculation, are usually applied before shareholder‐level adjustments that is, adjustments to value that affect the entity as a whole as opposed to those characteristics affecting the particular ownership interest. These entity‐level adjustments normally are applied to control‐level values however, in some cases where the analysis leads directly to a minority level value without ever estimating a control value, the entity‐level adjustment can be applied to those minority values before any shareholder‐level

Page 31 of 141 adjustments. It is important to note that the adjustment percentage would be the same in any case since entity level adjustments apply equally to all shareholders regardless of ownership interests, and associated limitations and special powers, if any Any other premiums or discounts will be considered and discussed in Section 5.5 Valuation Adjustments. Appropriate empirical studies (if available) and analyses will be Included in this discussion as required.

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