Foreword: Law Professor's Perspective
To write about valuation is a humbling task. No matter how ambitious and dedicated an author may be, eventually he or she is forced to acknowledge that even a lifetime of work would leave some aspects of the subject untouched. This offering from Judge David Laro and Dr. Shannon Pratt fills in some persistent gaps in the business valuation literature, as well as provides a surprisingly fresh treatment of perennial themes.
The range of the book is impressive. It covers such basics as the definition of fair market value for federal tax purposes and the features that distinguish it from fair value and intrinsic value. But it also digs into practical and procedural questions that many other valuation treatises leave out. And it analyzes several important evolving issues, such as valuing S corporation stock and selected international problems (transfer pricing and customs valuation), which require close attention from seasoned professionals and novices alike.
Business valuation experts often find themselves talking about synergies, and this work defines the term by example. Take the chapter on expert witnesses. Judge Laro's discussion of the relationship of the valuation professional to the litigation process provides a wealth of insight, from his unique and invaluable vantage point. But the chapter does not stop there. In its appendix, it is backed up by the Pratt organization's excellent directories of the many professional designations for appraisers ...