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Adjusted Book Value Method

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PEACHTREE-CASE-STUDY

Adjusted Book Value Method Including Excess Earnings

Adjusted Book Value Method. Unrecorded intangible assets are not recognized in applying this method therefore, the results were completely discounted in the final analysis. This method is sometimes useful when combined with other methods which would account for unrecorded intangible assets. The fair market value of the Company’s equity on a 5.45% interest in the Company on anon control (minority interest, non‐marketable basis is estimated to be $214,000 Table 43).
Adjusted Book Value Method Including Excess Earnings. Revenue Ruling 68‐609 explicitly states that the formula approach to valuing intangible assets should only be used if there is no better evidence available. Given the discussions throughout Section 5.0 Valuation Analysis and Calculations the appraiser is confident that there is replicable, qualified evidence of the existence of intangible assets therefore, this method was completely discounted. The fair market value of the

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Company’s equity on a 5.45% interest in the Company on anon control (minority interest, non‐marketable basis is estimated to be $232,000 (Table 43). Based on the foregoing discussion and recognizing the validity and importance of both the Market Approach (using the Direct Market Data Method) and the Income Approach (using the Single Period Capitalization Method, the appraiser has afforded both methods equal weight and gave no weight to the other methods applied. The result of this weighting is illustrated in the table below

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