Appraisal Economics Inc. has determined the fair market values of two minority, non-controlling membership interests in a leading cosmetics company that develops and markets skin care products. Part of our analysis required the valuation of the preferred equity of a related entity. The income and market approaches were utilized to determine the company’s total equity value, and Monte Carlo simulations were used to allocate the total equity value among eight different equity classes including the preferred membership interest. Appraisal Economics applied appropriate lack of control and lack of marketability discounts to the pro rata values and determined the fair market values of the two interests for gift and estate tax purposes.
Please click for more information about our valuations of companies and our work for gift and estate tax purposes.