“For those of you who haven’t read the Delaware Chancery Court decision in Delaware Open MRI Radiology Associates P.A. v. Kessler, I HIGHLY recommend you do so,” writes Nancy Fannon (Fannon Valuation Group) in a recent email “blast” to colleagues and the BVWire. “In addition to having a Judge who goes to great length to perform valuation, and makes some very astute observations along the way, this is the most complete discussion of the S Corp issue I’ve seen to date, and a case in which the Judge ‘gets’ the essence of the argument we have been making—that is, it’s the avoidance of the DIVIDEND TAX, not the deduction of the income tax, that is the issue.”
An abstract of this sure-to-be landmark case appears in the July issue of the Business Valuation Update (BVU) ; for a free copy of the article, go to www.bvresources.com/BVWireCentral.
Also: Look for a “point/counter-point” article by Fannon and Jim Hitchner on the controversial S Corp issues in the August BVU, plus an interview with an attorney for the minority shareholders in the Delaware Radiology case—who won a value for their shares that was nearly twice what the majority had originally offered in the squeeze-out merger.
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