2012 S Corp valuation methods Question Title * 1. Assume that you are valuing an equity interest in a private Subchapter S corporation (or similar pass-through entity) under the income approach (discounted cash flow analysis). In your standard practice, would you apply a "premium" to account for the differences between the data on publicly traded C corporations, from which you derive a cost of capital, and the subject S corporation, to which you will apply it? Yes No Please comment if you'd like: Question Title * 2. If you answered "no" to Question 1, do you still account for the effect of taxes on the value of an S Corp versus a C Corp by adjusting the discount rate? Yes No Please comment if you'd like: Question Title * 3. If you answered “yes” to Question 2, which of the following models do you routinely use or apply in deriving an S Corp premium?(Check all that apply.) Van Vleet Model Grabowski Model Mercer Model Treharne Model Delaware Chancery model (based on DE Open MRI Radiology Assoc. v. Kessler, 898 A.2d 290 (Del. Ch. 2006) Other (please specify) Question Title * 4. What effect, if any, has the recent research by Nancy Fannon and Keith Sellers on the impact of tax policy on private company values had on how you account for S Corporation values? None I'm still reading, reviewing, and processing the research Other (please specify in the comment field below) Exit >>
