Microsoft Word peachtree case study
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- 1.2 Nature and Purpose of Appraisal
| 1.0 INTRODUCTION 1.1 Subject of Appraisal Peachtree Plumbing, Inc. is a plumbing contracting company based in Atlanta, Georgia. Founded in 1989, Peachtree Plumbing, Inc. serves both residential and commercial customers in the general construction markets of both Georgia and northern Florida, with the majority of their business coming from the Atlanta metropolitan area. 1.2 Nature and Purpose of Appraisal This purpose of this appraisal is to determine the fair market value on a going concern basis of 5.45% interest (3,000 shares) in the issued and outstanding common stock of Peachtree Plumbing, Inc. on anon marketable non‐controlling basis. Marketability is defined as the ability to convert the investment to cash very quickly at minimal costs, and with a high degree of certainty of realizing the anticipated amount of proceeds. The Company’s stock is currently owned by Mr. Mike (30,000 shares) and Mrs. Shirley Jones (20,000 shares) and their children Mark (3,000 shares) and Jill (2,000 shares, and as such is considered closely‐held. Generally, closely‐held companies cannot be converted to cash (or a cash equivalent) quickly with any degree of reasonable certainty or a reasonable estimate of the net proceeds to be realized (i.e., including such estimable costs of sale or conversion. As a result of this general characteristic of closely‐held companies, they are referred to as non‐marketable, i.e., there is no efficient market or process by which to easily liquidate a shareholder’s interest (or investment) in a closely‐held company. This report has been prepared solely for the use of Mr. Mike and Mrs. Shirley Jones in order to complete the gifting of 3,000 shares each to their children, Mark 1 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 McGraw‐Hill. p. 26. Page 15 of 141 and Jill. Any opinions or estimates of value presented and discussed in this report applies to this appraisal assignment only and may not be used out of the context presented herein. Any other use of this report may lead the user to an incorrect conclusion for which the preparer of this report can assume no responsibility. Download 0.84 Mb. Share with your friends:
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