Annual or Recurring Valuations
Mercer Capital is the named appraiser in a growing number of buy-sell agreements. We have been conducting recurring valuations for businesses for many years, and have current clients with more than twenty years of continuing experience with us.
For valuation process agreements, we advocate the Single Appraiser, Select Now and Value Now option. The business appraiser is named in the agreement, and is engaged to provide an initial appraisal for purposes of the agreement. Appraisals are then provided annually or every other year to set the price for the agreement.
Because the appraisal process is exercised at least once, or on a recurring basis, the appraisal process should go smoothly when employed at trigger events and be less time-consuming and less expensive than other alternatives.
For most companies, the cost of the appraisal process is insignificant relative to the certainty provided by maintaining the pricing provisions of the buy-sell agreement on a current basis.
Buy-Sell Agreement Review
The professionals of Mercer Capital will review your buy-sell agreement from business and valuation perspectives and make appropriate suggestions. This type of review is helpful to owners and their attorneys when creating or amending buy-sell agreements.
Expert Witness Services
Unfortunately, too many buy-sell agreements end up in litigation. We have extensive experience in damages and valuation-related litigation support, and specific experience with litigation re buy-sell agreements.
Named Appraiser for Valuation Processes
Multiple appraiser process buy-sell agreements are common for substantial private companies and in joint venture agreements among corporate venture partners.
Many buy-sell agreements call for a two or three appraiser process to determine value when trigger events occur.
Mercer Capital professionals have been the named “first appraiser,” the “second appraiser,” and the “third appraiser” in many buy-sell agreement valuation processes.