Sentences with phrase «create unrealized appreciation»

Long - term wealth creation for private businesses, or in an M&A context, can come in a number of forms, including improved operating earnings, prospects for Initial Public Offerings, enhanced M&A prospects, abilities to refinance and / or create unrealized appreciation.

Not exact matches

The most inefficient tax way to create wealth is to have reportable operating earnings, a Going Concern emphasis; while the most efficient tax way to create wealth is to have unrealized (and, therefore mostly unreported) appreciation of asset values, a Resource Conversion emphasis.There is a high level of comfort for a buy - and - hold OPMI investor such as Third Avenue, when investing in the equities of companies which enjoy strong financial positions.

The most inefficient tax way to create wealth is to have reportable operating earnings, a Going Concern emphasis; while the most efficient tax way to create wealth is to have unrealized (and, therefore mostly unreported) appreciation of asset values, a Resource Conversion emphasis.

These other things encompass all the activities which create realized appreciation, unrealized appreciation (which is, of course, generally untaxed and not generally reflected in book value), as well as financing, and refinancing, opportunities.

Nonetheless, it should be noted that striving to create wealth through realized appreciation, unrealized appreciation and financing opportunities has a balance sheet (i.e., book value) emphasis, not an income account emphasis.

Given a choice, most businessmen would prefer to create wealth in the most tax - advantaged manner which means striving for realized appreciation, unrealized appreciation, and financing opportunities, rather than having operating, and therefore taxable, earnings.