Client Challenge
A privately held plastic manufacturing company required an independent valuation of a minority equity interest for internal planning and potential tax reporting. The company operates multiple facilities and maintains a long-standing family ownership structure with a restrictive shareholder agreement in place. Leadership sought a valuation that would reflect both operational performance and shareholder-level considerations.
Our Role
FairValue Advisors was engaged to determine the fair market value of a non-controlling, non-marketable interest in the company. We performed a comprehensive analysis incorporating historical financial performance, management projections, and relevant market data. Key considerations included:
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Normalizing historical earnings and evaluating projected financials.
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Assessing the implications of transfer restrictions and lack of liquidity.
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Benchmarking against public and private market comparables.
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Applying discounts for lack of control and marketability consistent with industry guidance.
The Result
Our valuation provided a defensible estimate of fair market value that supported the company’s planning objectives. The analysis was prepared in accordance with professional standards and structured to meet potential regulatory or advisory review requirements.
