Valuation of the Common Stock of:
«Cell│[1]ReportWriter!B3│0││Peachtree Plumbing, Inc»
«Cell│[1]ReportWriter!B4│0││5529 Red Bluff Blvd»
Valuation Date: «Cell│[1]ReportWriter!B5│0│mmmm d, YYYY│June 30, 2009»
Report Dated: «Cell│[1]ReportWriter!B32│0│mmmm d, YYYY│June 30, 2009»
Opinion Letter
«Cell│[1]ReportWriter!B32│0│mmmm d, YYYY│June 30, 2006»
«Cell│[1]ReportWriter!B10│0││Peachtree Plumbing, Inc»
«Cell│[1]ReportWriter!B11│0││Attention: Mr. Mike Jones»
«Cell│[1]ReportWriter!B12│0││Atlanta, Georgia 30329»
Dear «Cell│[1]ReportWriter!B10│0││Peachtree Plumbing, Inc»,
«Cell│[1]ReportWriter!B15│0││I» have performed a valuation engagement, as that term is defined in the Statement on Standards for Valuation Services (SSVS) of the American Institute of Certified Public Accountants, of «Cell│[1]ReportWriter!B3│0││Peachtree Plumbing, Inc». This valuation was performed solely to assist in the matter of «Cell│[1]ReportWriter!B43│0││Federal Estate Tax Return»; the resulting estimate of value should not be used for any other purpose or by any other party for any purpose. This valuation engagement was conducted in accordance with the SSVS. The estimate of value that results from a valuation engagement is expressed as a conclusion of value.
We were restricted or limited in the scope of our work or data available for analysis as follows:
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There were no audited financial statements so we relied on the accuracy of the financial that management gave us.
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The data basis chosen for comparable sales were limited in the size and year for which they sold. Also the data base for the discounts and premiums which were applied was several years old.
Based on our analysis, as described in this valuation report, the estimate of value of minority bases (20,000 shares of 55,000) non-marketable basis of « Peachtree Plumbing, Inc» as of «Cell│[1]ReportWriter!B5│0│mmmm d, YYYY│June 30, 2006» was «Cell│[1]ReportWriter!B24│0││$1,679,000». This conclusion is subject to the Statement of Assumptions and Limiting Condition found in Appendix B and to the Valuation Analyst’s Representation found in Appendix A. We have no obligation to update this report or our conclusion of value for information that comes to our attention after the date of this report.
Viking Valuations or its affiliates has no financial interest or contemplated financial interest in the property that is the subject of this report.
«Cell│[1]ReportWriter!B32│0││June 30, 2006»
«Cell│[1]ReportWriter!B6│0││Jason Allred»
«Cell│[1]ReportWriter!B7│0││Viking Valuations, llc»
Introduction 5
Specifics 5
Definitions 5
Standard of Value 5
Premise of Value 6
Control Characteristics 6
Marketability Characteristics 6
Approach 7
Assumptions 7
Scope Limitation 8
Company 8
History 8
Capital Structure 10
Sales Records and Management 10
Appraisal of Economic Conditions 12
National Economy 12
Regional/Local Economy 22
Industry Outlook 34
Company historical Balance Sheets 51
COMPANY COMMON SIZE BALANCE SHEET 52
Company historical Profit & Loss 54
COMPANY COMMON SIZE INCOME STATEMENT 55
RMA Peer Comparisons 56
Normalization Adjustments 61
Balance Sheet Adjustments 61
Income Statement Adjustments 62
Estimate of Value 64
Adjusted Book Value Method – Going Concern 64
Capitalization of Cash Flow Method 65
Direct Market Data Method: 72
Conclusion of Value 76
Appendix A: Valuation Analyst’s Representations 79
Appendix B: Limiting Conditions 81
Appendix C: Qualifications of Appraiser 84
Recent Professional Experience 84
Appendix D: Sources of Information 85
Appendix E: Marketability Discount 86
Empirical Studies 87
Court Decisions 88
Appendix F: Glossary 90
International Glossary of Business Valuation Terms* 90
Exhibits 98
EXECUTIVE SUMMARY:
Governing Standard:
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Revenue Ruling 59-60
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Purpose:
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Estate or Gift Tax
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Standard of Value:
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Fair Market Value
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Premise of Value:
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«Cell│[1]ReportWriter!B29│0││value as a going concern»
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Client Name:
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«Cell│[1]ReportWriter!B10│0││Peachtree Plumbing, Inc»
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Business Name:
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«Cell│[1]ReportWriter!B3│0││Peachtree Plumbing, Inc»
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Type of Entity:
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«Cell│[1]ReportWriter!B28│0││corporation»
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Business Interest Valued:
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«Cell│[1]ReportWriter!B23│0││36%»
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Valuation Date:
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«Cell│[1]ReportWriter!B5│0│mmmm d, YYYY│June 30, 2006»
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Report Date:
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«Cell│[1]ReportWriter!B32│0│mmmm d, YYYY│June 30, 2006»
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Appraiser Name:
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«Cell│[1]ReportWriter!B6│0││Jason Allred»
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Appraiser Firm:
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«Cell│[1]ReportWriter!B7│0││Viking Valuations, llc»
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Conclusion of Value:
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$«Cell│[1]ValueOfInterestAppraised!N25│0││1,679,000» Cell│[1]ReportWriter!BD41
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