BV benchmarking methodology passes another Daubert hurdle

BVWireIssue #49-2
October 11, 2006

If you’ve been following our “BV on Trial” series, then you know that business valuation experts—their qualifications and methodologies—have come under increasing scrutiny by courts and opposing counsel. (See, e.g., BWWire #47-4) Witness the recent 6th Circuit opinion in Tharo Systems, Inc. v. cabProducttechnik GmBH & Co. (August 24, 2006), in which a CPA and financial analyst—with over 100 prior trial appearances—met the Daubert challenge by defending his credentials as well as the common benchmarking methodology that many business appraisers depend on to develop cost data when historical records are incomplete. Despite vigorous attacks on the man and his method—the Court found both reliable; for an abstract of the case as it will appear in the next Business Valuation Update™, click here.

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