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This section of the site contains links to previously published Highland Global articles, as well as select articles from other firms / professional service providers with whom we work.

 

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7 Deadly Sins of Business Valuation:    Closely Held & Family Controlled Companies

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7 Deadly Sins of Business Valuation

 

Seven Deadly Sins of Business Valuation

 

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Purchase hardcover copy of 7 Deadly Sins of Business Valuation (86 pages)

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Highland Global continually monitors the state of the domestic economy as part of our approach to corporate growth and business appraisal services.  Our most recent assessment of the economy is provided in the following article.

 

Top Ten Business Valuation Questions that Attorneys Ask Business Appraisers

Business appraisers frequently serve as valuation experts for attorneys and their clients in legal matters ranging from litigation, marital dissolution, mergers and acquisitions, etc.  The top ten questions of value that attorneys often ask business appraisers have been compiled in this article.

 

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Preparing Your Company for Sale
To be successful in achieving maximum personal liquidity through a transaction, privately-held business owners should understand the many steps necessary to prepare their company for sale.  This article provides a brief discussion of these steps.

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Specific Company Risk Premium
One of the most difficult tasks of a business appraiser is determining the privately-held company's appropriate discount rate.  To do so the appraiser must estimate the company’s specific risk premium.  This paper discusses our views on the specific company risk premium in business valuations.

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Minority and Marketability Discounts

Valuation discounts applied to family limited partnership interests have long been a point of contention between taxpayers, their advisors, and the IRS.

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Selling Your Company
Given the tremendous financial, labor, and time investments that owners make in their businesses, it is critical that the owner take time to develop a strategy for achieving personal liquidity through the merger, sale, or recapitalization of their company.

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Case Study: Whitehall Textiles Group

Though it is sad, if wealth creation is not monitored regularly, a company can slide quietly into value destruction mode, ultimately leading to Chapter 7 bankruptcy liquidation.

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Direct Market Data Method:  Value Disparity Issues
  Although the Direct Market Data Method is an intuitive approach to value a privately held business, an appraiser is confronted with the challenge of how to address the disparity between value indications produced under the DMDM, the multi-period discounted earnings method, and the single period capitalization method. 

 

 PART I (PDF)

PART II (PDF)

 

Responses Direct Market Data Method: Value Disparity Issues

 

 The Value Examiner Letters to the Editor October 2006 (PDF)

 

 The Value Examiner Letters to the Editor January 2007 (PDF)

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Top Ten Questions of Value

Business appraisers are typically asked some of the same questions repeatedly by clients and their advisors.  The top ten questions of value have been compiled in an effort to address some of the most frequent concerns business owners and their advisors may have regarding a valuation report.

 

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Highland Global strives to actively participate in the strategic advisory and financial analysis professions by conducting research and writing articles on pertinent topics in our field.  Our publications are indicative of our dedication to furthering our profession through analyzing proactive approaches to current issues and trends.

To date, founder Robert M. Clinger III has had his informative two-part article entitled "Direct Market Data Method:  Value Disparity Issues" published in the National Association of Certified Valuation Analysts' journal, The Value Examiner.  In addition, Mr. Clinger has written two books on business valuation.  These publications and those that are forthcoming indicate Highland Global and its principals desire to contribute to the valuation body of knowledge for other valuation practitioners and professionals, academics, and clients.  

Knowledge becomes wisdom only after it has been put to practical use. ANONYMOUS

Highland Global’s professionals have written various articles regarding corporate growth strategies, exit planning, and business appraisals.  Our extensive network and library of resources provide our team with the information needed to successfully complete our clients’ assignments.

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Case Studies

 

Global Communications: Wealth creation versus wealth destruction should be regularly monitored in the transgenerational family business.

 

Isis Rental Management: An ESOP is an alternative for company owners seeking liquidity.  A competent valuation is a key element of the ESOP process.

 

JNC Shipping Corporation: Strong Corporate Governance and communication are important for creating and maintaining value in a family-controlled enterprise.

 

Morpheus Aerospace: "Demand capital" versus "patient capital" is an important factor in the investment decisions of family and closely held companies.

 

Patriot Industries: Company value should be revisited regularly and underperforming assets should be improved or divested.

 

The Canteen: A valuation sometimes identifies underperforming operations, thus alerting the prospective acquirer to potential issues to be addressed.

 

The Flower Shoppe:  A valuation before the transaction would have highlighted large non-recurring revenues, thus averting the crisis that ensued after the acquisition.

 

Triumvirate Industries: Companies that excel at the seven attributes of businesses that have created transgenerational wealth are in a better position to create value for their shareholders.

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Value Highlights

Highland Global's Newsletter

 

Highland Global periodically compiles a newsletter discussing various business valuation issues that may impact the value of a firm as well as other strategy, finance, and valuation news that may be relevant to the valuation profession, other professionals, and our clients.  

 

August 2007

September 2006

March 2006

 

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Family Limited Partnerships:

Discount Statistics of Closed-end Funds

 

Selecting an appropriate discount

applicable to minority interests in family limited partnerships is a challenge for financial analysts and business appraisers.  The assumptions that the analyst makes are particularly important and may come under intense scrutiny should the valuation be challenged by the IRS or the Tax Courts.

 

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 go to article (January 2006)

 

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 go to article (January 2008)

 

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