Sample Project: Valuation of private “mini-conglomerate” group-Advising re: privately marketing one of the component companies at a significant premium to FMV

Project Nature:   Valuation of private “mini-conglomerate” group of commonly-owned but otherwise unrelated entities under terms of an IRS Private Letter Ruling in a planned family split-up, including advice to privately market one of the component companies at a significant premium to FMV by selling to a strategic competitor and distributing the resultant proceeds among the remaining family ownership groups
SIC: Various (Retail; Mfg.; Whsle. Distrb’n., etc.)
Company Size:  Various; Ranging from $5MM to $15MM   in approximate  FMV.
Assignment Issues:
  The sub-level patriarchs/ matriarchs of a family owning & managing the subject component entities desired to split ownership among the various 2nd & 3rd generation family sub-groups in a non-taxable transaction based on independently-appraised Fair Market Values of the component individual entities, including appropriate cash/ financing exchange vehicles to equalize the respective differences in the various family sub-groups’ appraised entity interests, all according to the terms of an IRS private letter ruling.  We concurrently managed each entity’s management/ financial staff & outside professionals in concurrent independent valuations’ data gathering & related field work/ research to provide the needed independent valuation opinion findings & resultant reports thereon, working with the overall familys’ outside legal & financial advisors.  In this process, we advised and identified to the client (s) that one of the component entity units had the potential to be marketed at a significant premium to otherwise Fair Market Value if marketed & sold in an auction setting to specific competitors for whom a purchase/takeover of the subject entity unit had significant strategic value.  In acting upon our suggestions, the client family group was able to identify an appropriate industry-specific M&A advisor & successfully marketed that specific entity/ at a significant premium to our otherwise Fair Market Value opinion amount.