Court Dismisses S Corp Tax Argument in Fair Value Buyout

Business Valuation UpdateVol. 23 No. 4
BVLaw Case Update
April 2017
1541 General Contractors-Industrial Buildings and Warehouses
236210 Industrial Building Construction
judicial dissolution
expert testimony, fair value, income approach, normalization, capitalization rate, market-based approach, statutory appraisal, c corporation, s corporation, valuation methods, minority oppression, comparable transactions method

Matter of Digeser v. Flach
2017 N.Y. Misc. LEXIS 548
January 31, 2017
US
State Court
New York
Supreme Court, Albany County (Trial Court)
Duff W. Driscoll (petitioner); Scott DeMarco (respondent)
Platkin

Summary

In statutory fair value proceeding, court adopts income-based approach reconciling key differences in expert analyses regarding historical earnings period, tax rates, and normalization for intercompany transactions; court rejects market analysis.

See Also

Court Dismisses S Corp Tax Argument in Fair Value Buyout

In statutory fair value proceeding, court adopts income-based approach reconciling key differences in expert analyses regarding historical earnings period, tax rates, and normalization for intercompany transactions; court rejects market analysis.