Branson Valuation Essay

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Business Valuation Report

The Branson Trucking Company As of December 31, 2007 for Dave James


Hien Nguyen
Forensic Accounting
Tuesday 5:30-8:30 PM

November 29, 2011

Dear Dave James,

I have been asked to determine the fair market value of Branson Trucking Company as of December 31, 2007 for the purpose of determine your share in the business.

The definition of fair value market value is the price at which the property would change hands between a willing buyer and willing seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of all relevant facts.

Based on the information
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Major companies include Con-Way, JB Hunt, Schneider National, Swift transportation, and YRC Worldwide. Most employees in the truck transportation and warehousing industry work in small establishments. Fewer than 5 workers are employed by 62 percent of trucking and warehousing establishments. Consolidation in the industry has reduced the number of small, specialized firms. Trucking and warehousing establishments are found throughout the United States. The differential in growth between the freight industry and the trucking industry could be the factor that pushes trucking vacancies. The trucking industry has a current growth rate of 1%, while the freight industry is seeing a 4% growth rate. In addition, federal safety regulations are limiting the work hours for truck drivers, which results in more employees needed by trucking companies. The combination of all these things compiled the cost of diesel, spells out higher overall costs for every single trucking company in the industry. The growth of the freight industry and superior efficiency of railroads will lead to an even slower growth rate for the trucking industry and could be a cause for more concern as the trend continues.

------------------------------------------------- The Asset Approach Adjusted Net Worth Net Worth as adjusted simply summarizes the net assets and liabilities

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