In a recent case (Wright v. Wright), a valuation expert's excess earnings method withstood an appeal in a divorce case involving a law practice. Previously, the expert was on the winning side of another divorce case involving this very same law firm. The trial court found his valuation “better reasoned and more credible” and showed a “better focus on intrinsic value.” And the appellate court agreed.
Of course, a practice run like this expert had won’t happen too often. It can be difficult to place a value on a company whose product is intangible and whose workforce is possibly its quintessential asset. Despite their prevalence in today’s service-based economy, these practices present numerous challenges. On April 25, expert appraiser Kevin Yeanoplos (Brueggeman and Johnson Yeanoplos) joins BVR for an in-depth look at how best to avoid the many pitfalls of their valuation in Valuing Professional Practices.
Read the complete digest of Wright v. Wright, 2013 Va. App. LEXIS 53 (Feb. 19, 2013), in the May Business Valuation Update; the court’s decision will be posted soon at BVLaw.
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