Court Favors MUM Method for Goodwill Allocation in Illinois Divorce Case

BVLaw
Court Case Digests
August 1, 2018

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3999 Manufacturing Industries, NEC
339999 All Other Miscellaneous Manufacturing
marital dissolution/divorce
enterprise goodwill, income approach, personal goodwill, capitalization rate, cash flow, discount for lack of marketability (DLOM), market approach, earnings, noncompete agreement, multiple, sole proprietorship, earnings before interest, taxes, depreciation, amortization (EBITDA), controlling interest
In re Marriage of Preston
2018 Ill. App. Unpub. LEXIS 1281
US
State Court
Illinois
Appellate Court
Neal Richardson (husband); Bruce Hutler (wife)
Hudson

Summary

In divorce case, appellate court upholds valuation based on opinion of husband’s expert using MUM method to separate total goodwill value into personal and enterprise components; court also upholds use of small marketability discount where owner spouse is the sole owner of the company.

See Also

In re Marriage of Preston

Full Text of Court Cases
August 1, 2018

In divorce case, appellate court upholds valuation based on opinion of husband’s expert using MUM method to separate total goodwill value into personal and enterprise components; court also upholds use of small marketability discount where owner spouse is the sole owner of the company.