The bottom - up analyses center on the facts that the businesses in which Third Avenue has invested are all eminently creditworthy; that the common stocks were
acquired at a significant discount to our estimate of NAV; and that the common stocks are the issues of companies that provide comprehensive, written disclosures; and are regulated by government agencies whose principal interest seems to be investor protection.
Our accounting for acquisitions involves
significant judgments and estimates, including the fair value of certain forms of consideration such as our common stock, preferred stock or warrants, the fair value of
acquired intangible assets, which involve projections of future revenues, cash flows and terminal value which are then
discounted at an estimated
discount rate, the fair value of other
acquired assets and assumed liabilities, including potential contingencies, and the useful lives of the assets.