The Nebraska District Court Is Reversed in Its Determination of Fair Value

BVLaw
Court Case Digests
January 14, 2022
0762 Farm Management Services
811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
estate and gift taxation, shareholder dissent/oppression
fair value, appraisal, asset approach, discount, going concern, liquidation, minority shareholder, valuation methodology, dissolution, shareholders

Bohac v. Benes Serv. Co.
310 Neb. 722; 2022 Neb. LEXIS 5
US
State Court
Nebraska
Supreme Court
Janet M. Labenz, CPA/ABV/CFF, Matthew K. Stadler, CPA/ABV
Miller-Lerman, Cassel, Funke, Papik, and Freudenberg, JJ. Heavican, C.J.

Summary

The Nebraska District Court in this case applied discounts to its determination of fair value (FV). The Supreme Court found that the district court did not use the correct definition of fair value, resulting in discounts being applied to the estate’s shares. The Supreme Court also found that the proper premise of value was going concern and the proper methodology for value was the asset approach. The Supreme Court also allowed as a liability the deferred tax on potential future sale of assets by the corporation.

See Also

Bohac v. Benes Serv. Co.

The Nebraska District Court in this case applied discounts to its determination of fair value (FV). The Supreme Court found that the district court did not use the correct definition of fair value, resulting in discounts being applied to the estate’s shares. The Supreme Court also found that the proper premise of value was going concern and the proper methodology for value was the asset approach. The Supreme Court also allowed as a liability the deferred tax on potential future sale of assets by the corporation.