| An Empirical Analysis of the Valuation Impact of Right of First Refusal (ROFR)
Program Type: Recorded Webinar(Audio, PPT Presentation)
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Three (3) Hours
Fields of Study: Accounting
Shipping Weight: 0lbs. 0oz.
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 webinar, attendees will be able to:
- Identify situations where a ROFO/ROFR clause would be appropriate
- Explain the underlying assumptions for the agreement(s)
- Formulate a defensible value for the agreements
Who Should Attend
Financial professionals with an interest or expertise in healthcare valuation
Dr. Ashok Abbott, PhD
Dr. Ashok Abbott is a tenured associate professor of Finance at West Virginia University in Morgantown, West Virginia.
Professor Abbott received his MBA and PhD in Finance from Virginia Tech, Blacksburg, VA. His PhD dissertation title was, "The Valuation Effects of Tax Legislation in Corporate Sell-offs."
Professor Abbott provides analytical and research support to members of the legal and valuation communities. He has served as an expert witness in state and federal court for depositions, hearings, and trials. His recent assignments include
working with S&P, Duff & Phelps, and Willamette Management Associates.
Professor Abbott's 25 years of experience in academia, 16 years of industry experience, and 20 years of litigation consulting experience, uniquely qualify him to analyze complex economic issues and develop reasoned opinions to meet the needs of dispute and valuation engagements.
In addition to publishing extensively in scholarly finance research journals, he has presented at national and international finance and valuation conferences. Professor Abbott's classroom experience allows him to present complex ideas to nonexperts in a manner that is both educational and engaging.
Professor Abbott supports valuation practitioners and litigators with quantitative research, statistical analysis, and economic modeling. His statistical capabilities include sampling and research design, testing for statistical significance, modeling and estimation and regression, and time series analysis. He works closely with litigation teams, presenting them with his independent analysis of financial and economic data. He also provides a professional critique of the opposing party expert's analysis.
John Chwarzinski, MSF, MAE
Mr. John R. Chwarzinski is Senior Vice President of HEALTH CAPITAL CONSULTANTS (HCC). Mr. Chwarzinski holds a master’s degree in Economics from the University of Missouri—St. Louis, as well as a master’s degree in Finance from the John M. Olin School of Business at Washington University in St. Louis. Mr. Chwarzinski’s areas of expertise
include advanced statistical analysis, econometric modeling, and economic and financial analysis. He is a member of the St. Louis Chapter of the American Society of Appraisers, for which he serves as Treasurer, and is a candidate for the
Accredited Senior Appraiser designation from the American Society of Appraisers.
Robert Cimasi, MHA, ASA, FRICS, MCBA, AVA, CM&AA
Mr. Robert J. Cimasi has served as president of Health Capital Consultants (HCC), a nationally recognized healthcare financial and economic consulting firm headquartered in St. Louis, Missouri since 1993. Mr. Cimasi has over 25 years of
experience in serving clients, with a professional focus on the financial and economic aspects of healthcare service sector entities including: valuation consulting and capital formation services; healthcare industry transactions including joint
ventures, mergers, acquisitions, and divestitures; litigation support and expert testimony; and certificate-of-need and other regulatory and policy planning consulting.
Mr. Cimasi holds a masters in Health Administration from the University of Maryland, has served as an expert witness on cases in numerous courts, and has provided testimony before federal and state legislative committees. He is a nationally
known speaker on healthcare industry topics, the author of several books, including his latest, The Adviser’s Guide to Healthcare (2010—AICPA), numerous chapters, published articles, research papers and case studies, and is often quoted
by healthcare industry press. In 2006, Mr. Cimasi was honored with the prestigious Shannon Pratt Award in Business Valuation conferred by the Institute of Business Appraisers. In 2011, he was named a Fellow of the Royal Institution of
Chartered Surveyors (RICS) and serves on the Editorial Board of the RICS Modus Americas Journal.