HOW DOES SPARDATA VALUE A TANGIBLE ASSET LIKE LAND (AS OPPOSED TO OPERATING A BUSINESS)?
Valuing a tangible asset is a three-step process. First SPARDATA values the asset to determine it’s “equity” in the business. Second SPARDATA allocates the equity among the investors pursuant to its governing document (shareholders agreement or partnership agreement) to determine “Net Asset Value per share”. (Another way of expressing NAV per share is the amount of cash that would go into the investor’s pocket if the underlying if the underlying asset were sold on the valuation date.) Third SPARDATA applies a discount to reflect the share’s lack of marketability to determine its “Fair Market Value per share”. The discount can range from 16% to 47% depending on 10 different factors.
