THE ALBION GROUP OF COMPANIES:
COMPANY VALUATION SERVICES:
When engaged to value the stock of a closely held corporation, or the stock of corporations where market quotations are not available, Albion takes into consideration all available financial data, as well as all relevant factors affecting the fair market value. No general formula may be given that is applicable to the many different valuation situations arising in the valuation of such stock. However, the general approach, methods, and factors which must be considered in valuing such securities are outlined below:
√ The nature of the business and the history of the enterprise from its inception.
Ultimately, Albion concludes a Fair Market Value consistent with the most widely recognized definition of value used by financial and legal professionals - namely, in the USA, Internal Revenue Service Ruling 59-60. Although not actually a law, this ruling has been given the force of law in numerous court cases involving the valuation of closely held securities. Its definition of "Fair Market Value" is used almost universally as a means of setting forth the purpose and meaning attached to valuation opinions. Revenue Ruling 59-60, C.B. 1959-1, 237 defines Value as: "The price at which the property would change hands in a competitive and open market between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge to relevant facts and assuming the price is not affected by undue stimulus".
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