Fair Market Value of Common Stock and Newly Issued Preferred Stock - Shareholder & Succession Planning

Stout was engaged to determine the fair market value of the common stock of two related companies pursuant to a recapitalization into common and preferred stock. The companies both engage in the wholesale distribution of aftermarket auto parts in the United States and Canada. As a part of our analysis, we were also tasked with determining the preferred yield on the newly issued preferred stock. Our work was used as a part of the recapitalization in order to provide liquidity to certain existing shareholders and to allow the next generation of management to take an active equity stake in the companies.