Qualifications

of William H. Frazier, ASA

I have over 45 years of experience in the field of valuation and financial advisory services. Early in my career, I worked as an investment banker engaged in public offerings, private placements, and mergers and acquisitions. Over the years, my assignments migrated increasingly into the business valuation arena. My valuation advisory experience encompasses a broad range of industries. I have performed assignments for numerous purposes including estate and gift taxation, bankruptcy and reorganization, disputes related to business transactions and shareholders, and family law matters. The majority of my valuation experience within the past 20 years has been in the context of valuing family-owned businesses and holding entities such as family limited partnerships.
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Valuation & Financial Advisory

American Society of Appraisers

Senior Member

I have been a senior member of the American Society of Appraisers (ASA) since 1987. These designations involve various combinations of requirements, including passing numerous courses and multiple levels of exams and fulfilling continuing education requirements for periodic reaccreditation. I have served on various boards and committees of the ASA over the years, including chair of the Government Relations Committee, Business Valuation Committee (treasurer and secretary), Standards Sub-committee of Business Valuations Committee, and Education Foundation. I was previously head of the Tax Reform Task Force of the ASA, a body created to offer guidance to members of the business valuation profession with respect to the Tax Cuts and Jobs Act. From 2009-2011, I served on the IRS Advisory Council. IRSAC's primary purpose is to provide an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. At IRSAC, I was attached to the Office of Professional Responsibility. I currently serve on the Standards Sub-committee.
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I am the developer of the Non-marketable Investment Company Evaluation (“NICE”) Method and author of the chapter “The Cost of Capital of Private Company Interests” in the valuation textbook, The Cost of Capital. The NICE Method is gaining acceptance as a leading method of the Income Approach to valuations of family-owned investment entities. It was favorably reviewed in the 2019 U.S. Tax Court case Grieve v. Commissioner. I am also the lead author of the chapter “Discounts for Lack of Marketability” in the forthcoming sixth edition of Valuing a Business-generally regarded as the “Bible” of business valuation. Another valuation methodology I developed is the “Market Derived Blockage Discount Model”. This model was described in a 2018 article in the Business Valuation Review and was also the subject of a 2020 webinar for the ASA. Finally, for family law matters, I developed the course “Business Valuations in Divorce – Texas Case Law and Valuation Principles”. The course is an in-depth look at the valuation implications of 15 Texas cases.
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Non-Marketable Investment Company Evaluation (NICE) Method

Developer

WH FRAZIER LEAD AUTHOR2

Lead Author

I am the author of the chapter “The Cost of Capital of Private Company Interests” in the valuation textbook, The Cost of Capital. 

I am also the lead author of the chapter “Discounts for Lack of Marketability” in the forthcoming sixth edition of Valuing a Business-generally regarded as the “Bible” of business valuation.

Another valuation methodology I developed is the “Market Derived Blockage Discount Model”. This model was described in a 2018 article in the Business Valuation Review and was also the subject of a 2020 webinar for the ASA.

Finally, for family law matters, I developed the course “Business Valuations in Divorce – Texas Case Law and Valuation Principles”. The course is an in-depth look at the valuation implications of 15 Texas cases.

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  • Grieve v. Commissioner, T.C. Memo. 2020-28
  • Steinberg v. Commissioner, 145 T.C. No. 7 (October, 2014)
  • Hendrix v. Commissioner, T.C. Memo 2011-133 (June 15, 2011)
  • McCord v. Commissioner, [F. 3rd . No. 03-60700 (5th Cir. August 22, 2006)] Re: McCord v. Commissioner 120 T.C. 358 (2003), United States Court of Appeals for the Fifth Circuit.
  • Charles T. McCord and Mary S. McCord, Donors v. Commissioner of Internal Revenue, United States Tax Court. 120 T.C. 358 (2003).
  • Estate of Frazier Jelke III vs. Commissioner, U.S. Court of Appeals for the 11th Circuit No. 05- 15549 filed Nov. 15, 2007 [reversing in part T.C. Memo 2005-131 filed May 31, 2005], United States Court of Appeals for the Eleventh Circuit
  • Estate of Frazier Jelke, III, Deceased, Wachovia Bank, N.A. (formerly known as First Union National Bank), Personal Representative, v. Commissioner of Internal Revenue, United States Tax Court. T.C. Memo 2005-131 (2005).
  • Sidney E. Smith, et al v. United States of America, U.S. District Court for the Western District of Pennsylvania (2005).
  • Estate of Floyd E. Jones, Deceased, Hubert L. Jones, Independent Executor v. The United States, United States Court of Federal Claims (2004)
  • Estate of Gladys Cook v. Commissioner of Internal Revenue, United States Tax Court. T.C. Memo. 2001-170 (2001).
  • Estate of Dunn [301 F.3d 339 (2002), rev. 79 TCM 1337 (2000)] Re: T.C. Memo 2000-12,
  • United States Court of Appeals for the Fifth Circuit
  • Estate of Beatrice Ellen Jones Dunn, Deceased, Jesse L. Dunn III, Independent Executor v. Commissioner of Internal Revenue., United States Tax Court. T.C. Memo 2000-12 (2000).
  • Estate of Frank M. DiSanto v. Commissioner of Internal Revenue, United States Tax Court. T.C. Memo. 1999-421 (1999).

 

  • Nell Shehee v. Kilpatrick’s Rose-Neath Funeral Homes, Crematorium and Cemeteries Inc. First Judicial District Court, Caddo Parish, Louisiana (February, 2020)
  • Sfile Technology Corporation, Claimant, v. Donnelly & Co. and George Arthur Donnelly, III, Respondents. CASE NO. 01-17-004-8242. AMERICAN ARBITRATION ASSOCIATION. June, 2018.
  • Carolina Beverage Group, LLC, Claimant, v. Harry Barto, Respondent. CASE NO. 01-16-0001- 8613. AMERICAN ARBITRATION ASSOCIATION. April, 2017.
  • Richard M. Foxx v. Stephen R. Foxx, et al. Probate Court No. 2. Dallas County, Texas. Cause No. PR 11-2581-P2. (2012)
  • Bobbitt Noel, Jr. v. Devon Energy Production Company, L.P. et al. District Court of Harris County, Texas 127th Judicial District. Cause No. 20088-39598. (2011).
  • In the matter of the marriage of R.E.D. and S.C.D. No. 2006-41478, May 2007, In the District Court of Harris County, Texas 312th Judicial District
  • OCA, Inc. v. OCA International, LLC, Gimili Enterprises, LLC, and Bartholomew F. Palmisano, Sr., Chapter 11, Case No. 06-10179(B), August 2007, United States Bankruptcy Court Eastern District of Louisiana
  • Estate of Douglas Manship, et al v. United States of America, U.S. District Court for the Middle District of Louisiana (2006)
  • Houston Saba, L.P. v. Kenneth B. Meyer, et al In the 280th District Court of Harris County, Texas, 280th District Court of Harris County, Texas (2005)
  • Comalloy International Corporation, a Delaware Corporation and Exxon Corporation, a New Jersey Corporation, Plaintiffs/Counterdefendants v. Paul J. Fenelon and Ronald M. Sohr, Defendants/Counterplaintiffs, United States District Court for the Middle District of Tennessee, Nashville Division
  • Preston, Reynolds & Co., Inc. v. The John R. Behrmann Revocable Trust, District Court, City and County of Denver – State of Colorado (2004)
  • Gyrodata Incorporated v. Baker Hughes Incorporated and Baker Hughes Inteq, 127th Judicial District Court of Harris County, TX - No. 2000-40391
  • “Determining the Cost of Blockage by the Market-Derived Blockage Model.” Business Valuation Review. Volume 37, Issue 2, Summer 2018.
  • “NICE Real Estate Valuation Module” BV-171 WEB. American Society of Appraisers. April 24, 2018. Available at: http://www.appraisers.org/Education/View-Course?CourseID=608.
  • “The Tax Cuts and Jobs Act and New Pass-Through Entity Impacts” BVTX2-WEB. American Society of Appraisers. 2018. Available at: http://www.appraisers.org/Education.
  • “Valuing Very Large Estates Holding Investment Assets.” A BVR Webinar. December, 2017. Available at: https://sub.bvresources.com/TrainingEvent.asp?WebinarID=613.
  • “Estate and Gift Tax Valuation Outlook for 2017” Trusts & Estates. February 2017.
  • “How new IRS rules “could be devastating” for family-owned businesses,” Houston Business Journal, September 1, 2016.
  • “The Future of Estate Planning,” The Stout Journal, Spring/Summer 2017. “In Defense of Tax Affecting,” The SRR Journal, Spring 2016.
  • “Erasing the Unwritten Rule,” The SRR Journal, Fall 2015.
  • “Cost of Capital of Family Holding Company Interests,” Cost of Capital (Fifth Edition) Workbook and Technical Supplement, 2014.
  • “The Estate of Franklin Z. Adell v. Commissioner: SRR Experts Cited in Recent Tax Court Decision Involving Personal Goodwill,” The SRR Journal, Fall 2014.
  • “Estate of John Koons v. Commissioner, TCM 2013-94,” The SRR Journal, Fall 2013 “Unintended Consequences” Trust & Estates, June 2011.
  • “After McCord: The Future of FLP Valuations and Discount Determinations.” BVR’s Guide to Business Valuation Issues in Estate and Gift Tax. Linda Trugman, editor. Business Valuation Resources, LLC (2010).
  • “Valuation Discounts in Tiered Investments,” Trusts & Estates, October 2010.
  • “Cost of Capital of Private Investment Company Interests,” Cost of Capital Workbook and Technical Supplement, 2010.
  • “The Pomeroy Bill Sledgehammer,” Trusts & Estates, May 2009.

Publications by William H. Frazier, ASA