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An Empirical Analysis of the Valuation Impact of Right of First Refusal (ROFR) | (160921A_N) |
Course CPE: 3 Hours Fields of Study: Accounting–2 hour(s); Business Management and Organization–1 hour Program Level: Intermediate Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities. Advanced Preparation: None Delivery Method: Self-Study |
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Number: 16PHCWDC0921A
Shipping Weight: 0lbs. 0oz. |
Price:
$180.00 |
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Recording Date: September 21, 2016
Presenter: Bob Cimasi; Ashok Abbott; John Chwarzinski
Program Description:
A valuation analyst uses a Discount for Lack of Marketability (DLOM) to adjust the calculated value of an asset (or group of assets) that are restricted in their marketability, i.e., where the owner is limited in transferring the assets. An initial buyer of an asset may be offered a Right of First Refusal (ROFR), a stipulation on some future transfer agreement that grants this buyer (the right-holder) the opportunity to match any agreed upon, bona fide offer for the asset before the asset is permitted to be sold to any third-party buyer. Since the ROFR may place a constraint on the transferability of an asset, the existence of a ROFR is expected to affect the magnitude of a DLOM, all things being equal. This presentation endeavors to analyze public transaction data to estimate the marginal impact of ROFR on DLOM.
After completing this course, you will be able to:
- Identify situations where a ROFO/ROFR clause would be appropriate
- Recognize the underlying assumptions for the agreement(s)
- Select a defensible value for the agreements
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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