Using the NICE Method for FLP Valuation

May 24, 2011

American Society of Appraisers
Webinar
1:00 – 3:00 pm EDT

William Frazier, Principal at HFBE and creator of the Non-Marketable Investment Company Evaluation (NICE) Method, will be presenting an explanation of the NICE Method at the ASA webinar. 

Nearly all business appraisers are familiar with valuing Family Limited Partnerships through the use of valuation discounts. The traditional methodology employs the use of both the Asset-based and Market Approaches to Value. The NICE Method is an Income Approach to value and does not rely upon valuation discounts.

The NICE method is designed especially to determine the fair market value of interests in FLP’s by taking into account investment risks and embodying them into the appropriate cost of capital for the subject interest. The NICE method relies upon Modern Portfolio Theory to solve for the price at which the willing seller and willing buyer would transact for the interest in view its risks and expected returns. This is, in fact, what investors in the marketplace actually do every day.

Click here to register for the webinar.