Appraisal Economics Inc. valued a 501c(6) not-for-profit that organizes an annual series of events for the advertising industry. The company was founded a decade ago to serve as an industry trade group, and was considering converting to for-profit tax status. We were engaged to value the company, and our report was presented to the Office of the New York Attorney General to ensure the terms of the not-for-profit’s conversion to for-profit status were appropriate. We worked with the company to develop financial projections, and we valued the company using an income approach based on those financial projections. We also reviewed sales of not-for-profit and for-profit companies that were reasonably similar to the client.
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