In Fair Value Determination, Court Says SSVS Discourages Use of Post-Valuation-Date Data

BVLaw
Court Case Digests
July 10, 2020

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5999 Miscellaneous Retail Stores, NEC
446120 Cosmetics, Beauty Supplies, and Perfume Stores
judicial dissolution
discount rate, expert testimony, fair value, income approach, buyout, capitalization of earnings, capitalization rate, cash flow, discount, key person, company specific risk, revenue
Biton v. Kreinis
2020 V. Cir. LEXIS 94
US
State Court
Virginia
Circuit Court
Unknown (plaintiff); unknown (defendant)
Lannetti

Summary

In dispute over fair value of plaintiff’s shares, court agrees with parties’ experts on use of capitalization of earnings method to value company; court rejects defense expert’s use of QuickBooks data and post-valuation-date revenue as representative annual revenue; applies key-person discount.

See Also

Biton v. Kreinis

Full Text of Court Cases
July 10, 2020

In dispute over fair value of plaintiff’s shares, court agrees with parties’ experts on use of capitalization of earnings method to value company; court rejects defense expert’s use of QuickBooks data and post-valuation-date revenue as representative annual revenue; applies key-person discount.