AEG was retained to value over 25 grocery stores and real estate, as well as to value the equity owned by two individuals in the subject businesses for planning purposes. We used an income-based approach to individually value each store. We also performed an industry analysis, geographic and market analysis, and economic overview for the […]
Anderson Economic Group was retained to value the distribution rights of a beer distributor. The rights were owned by multiple distribution companies prior to its acquisition. We provided an industry review, market analysis, economic outlook, financial review, and valuation opinion for the client. Additionally, Anderson Economic Group provided methodology and assumptions along with the valuation […]
Detroit Tigers 2008 Net Economic Impact from Attendance
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This guide is for dealers that are considering participating in the arbitration process established by H.R. 3288, which was signed in to law by President Obama on December 16, 2009. It reviews the timeline and arbitration process, and the criteria that will be considered by the arbitrator. It concludes with some practical steps dealers should take as they consider whether to participate in the arbitration process.
Patrick L. Anderson and Ilhan K. Geckil
A review of valuation methods in the alcoholic beverage industry.
The vast majority of businesses in the United States are privately held, and approximately 99 percent meet a common government definition of “small.” However, we know surprisingly little about the market values of these organizations. In this paper, we estimate the market value of privately held firms in the United States from sources on earnings, assets, and reported market value of multiple forms of business entities, including corporations, partnerships, LLCs, and sole proprietorships. We discuss various theoretical and practical methods of valuing assets, including those arising from economics, neoclassical finance, portfolio theory, and tradition. Concluding that most of them are not appropriate for valuing private firms, we use insights from dynamic programming and ratio analyses from traditional technique to produce a new estimate based on reported taxable earnings, net worth, and tax filing status. Using this approach, we estimate that privately held U.S. firms had earnings that exceeded those of publicly held firms in two recent years by a significant margin. Moreover, the market value of these firms exceeded that of publicly traded firms. We also conclude that policymakers, perhaps grossly, underestimate the true scale of “small” and privately held firms in the economy.
Information on Business Economics as well as this article can be found on NABE’s website (Vol. 44 No. 2). Or you can contact us if you are interested in viewing an author copy.
Ilhan K. Geckil and Patrick L. Anderson
This book demonstrates the use of various game theory techniques to address practical business, economic, legal, and public policy issues. It also illustrates the benefits of employing strategic thinking that incorporates the uncertainty surrounding the behavior of other parties.
A small law firm in Toledo, Ohio retained AEG to calculate economic damages, after a chiropractor invented an orthopedic pillow. The pillow was designed to be placed between a person’s knees while sleeping to reduce back pain. In 2000, n was sued by Banyan Licensing on a claim that they had superior rights to the design through an existing patent.
The suit at hand was a legal malpractice suit where Anderson Economic Group calculated the chiropractor’s lost ability to collect royalty payments from the sale of the orthopedic pillow in the United States.
We prepared an expert report. Patrick Anderson provided deposition testimony about the report. Mr. Anderson also testified in the Court in Toledo. In addition, we provided an analysis of the opposing expert’s report, and questions to be posed to the opposing expert.
After the trial, AEG’s client got a favorable settlement offer.