![]() ![]() Someone who has the entire 1994 Upper Deck set except for the Kenny Lofton card may be willing to pay a premium above the card’s $0.50 fair market value because they can derive additional value by completing their set. The value to a specific buyer is called “strategic value” or “investment value” and it is not the standard of value used in many business valuation engagements.įor example, I have a 1994 Kenny Lofton Upper Deck card that has a quoted value of $0.50. Those efficiencies motivate the acquirer to pay more for the business than a financial buyer. However, when many business owners contemplate the value of their business, they often envision it from the standpoint of a larger, similar company paying a premium to acquire their company because of expected post-transaction efficiencies. Most business valuation engagements, including those for IRS gift and estate tax reporting purposes and divorce proceedings, require the use of fair market value as the standard of value.įair market value typically assumes the purchaser is a “financial” buyer (someone who is investing in the business with no plans to create synergies or other economies of scale) unless certain circumstances dictate otherwise. These prices represent what we in the valuation world call “fair market value.” This is the price at which a willing buyer and a willing seller, after reviewing all material facts about the card, would likely transact. Trading card resources such as Beckett list estimated prices for nearly every sports trading card available. What do baseball cards have to do with the value of your business? More than you might think. I have boxes and boxes of cards I accumulated over the years, as do many of you I am sure (if your parents haven’t tried to throw them away yet). ![]() I absorbed the stats on the back of each card and rattled them off at school like it was a homework assignment. As a kid, baseball and football trading cards were my life.
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