Category Archives: Valuation Proceeding

The Market Approach to Valuation

The market approach to valuation, which is sometimes called “comparative company analysis,” compares the target company to the operations and values of publicly traded companies of comparable size, growth, characteristics, industry, market area, profitability and overall financial condition. The market … Continue reading

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The Asset Value Approach to Valuation

The prior post discussed the discounted cash flow (“DCF”) method of valuation.  A business also may be valued based on the net value of its assets.  This is sometimes called the “book value” or “net asset value” of a business, … Continue reading

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The Income Approach — Discounted Cash Flow Analysis

The prior post contained an overview of valuation methods.  This one addresses the income approach in particular.  The discounted cash flow (“DCF”) method is the income approach favored by most financial professionals.  In this approach, the value of the business … Continue reading

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Valuation of Minority Interests in Closely Held Illinois Businesses

Valuation of a business plays a critical role in adjudicating disputes among co-owners of closely-held businesses.  There are numerous circumstances where a court may be required to determine the value of a litigant’s interest in a business, such as under … Continue reading

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Buyouts at Fair Value, Not Fair Market Value

Under the Illinois Business Corporations Act, the shareholder of a closely held corporation with certain grievances may seek involuntary dissolution of the corporation. (See my prior post on the grounds for dissolution.)  However, instead of dissolution, the court may order … Continue reading

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