To the Trustees:
We are writing this memorandum in response to your inquiry regarding the value of Houses LLC, having an address at 123 4th Avenue in New York, NY (“Company”). The Trusts own a majority share of Houses LLC, a real estate management company which manages a real estate portfolio held and controlled by affiliated parties. You have requested us, in your capacity of a fiduciary to the Trusts, to analyze the value of Houses LLC in anticipation of a sale to Messrs. John and Jane for a nominal amount.
As Trustee of the Trusts, you have fiduciary duties to act in good faith and prudent manner reasonably believed to be in the best interests of the beneficiaries of the Trusts. Any sale or transfer of Trusts’ assets must be conducted in …show more content…
This market-based measurement does not assume a forced liquidation or distressed sale and considers the involved buyers and sellers as independent and knowledgeable actors who act in their best economic interest. There are several techniques of measuring determining the fair value: The market approach compares the prices of identical or comparable sales generated by real market transactions, the income approach discounts future cash flows to the current present value, and the asset approach measures the current amount required to replace the value of existing …show more content…
Goodwill may be attributable to many different factors such as reputation, management skills, location, and customer loyalty. Houses LLC has no firm commitments or licenses, and serves only one group of affiliated parties. The company is unknown to the public and has no name recognition. Accordingly, the company has no intangible assets.
Conclusion
Based on our analysis, we believe that Houses LLC has no value. Moreover, its owners may be liable for any contingencies that may result as part of the company’s operations, including litigations, claims and casualties. Likewise, the company is responsible for the general maintenance of the properties, which may include repairs arising due to catastrophes and unusual occurrences. This may prove to be detrimental to the company’s owners, as its income stream would be insufficient for such unexpected expenditures.
Accordingly, we believe that not only is the company of no value to the Trusts, and a sale for a nominal amount would be considered a prudent transaction conducted in good faith, the sale would actually be beneficial to the beneficiaries of the Trusts. Accordingly, we declare that such a transaction would be in the best interests of the beneficiaries of the
We are writing this memorandum in response to your inquiry regarding the value of Houses LLC, having an address at 123 4th Avenue in New York, NY (“Company”). The Trusts own a majority share of Houses LLC, a real estate management company which manages a real estate portfolio held and controlled by affiliated parties. You have requested us, in your capacity of a fiduciary to the Trusts, to analyze the value of Houses LLC in anticipation of a sale to Messrs. John and Jane for a nominal amount.
As Trustee of the Trusts, you have fiduciary duties to act in good faith and prudent manner reasonably believed to be in the best interests of the beneficiaries of the Trusts. Any sale or transfer of Trusts’ assets must be conducted in …show more content…
This market-based measurement does not assume a forced liquidation or distressed sale and considers the involved buyers and sellers as independent and knowledgeable actors who act in their best economic interest. There are several techniques of measuring determining the fair value: The market approach compares the prices of identical or comparable sales generated by real market transactions, the income approach discounts future cash flows to the current present value, and the asset approach measures the current amount required to replace the value of existing …show more content…
Goodwill may be attributable to many different factors such as reputation, management skills, location, and customer loyalty. Houses LLC has no firm commitments or licenses, and serves only one group of affiliated parties. The company is unknown to the public and has no name recognition. Accordingly, the company has no intangible assets.
Conclusion
Based on our analysis, we believe that Houses LLC has no value. Moreover, its owners may be liable for any contingencies that may result as part of the company’s operations, including litigations, claims and casualties. Likewise, the company is responsible for the general maintenance of the properties, which may include repairs arising due to catastrophes and unusual occurrences. This may prove to be detrimental to the company’s owners, as its income stream would be insufficient for such unexpected expenditures.
Accordingly, we believe that not only is the company of no value to the Trusts, and a sale for a nominal amount would be considered a prudent transaction conducted in good faith, the sale would actually be beneficial to the beneficiaries of the Trusts. Accordingly, we declare that such a transaction would be in the best interests of the beneficiaries of the