Averaging Multiple Appraisals Yields Most Reliable FMV

Business Valuation UpdateVol. 21 No. 2
Legal and Court Case Update
February 2015
4899 Communications Services, NEC
517410 Satellite Telecommunications
ESOP valuations
breach of contract, expert testimony, breach of fiduciary duty, conflict of interest, fair market value (FMV), fraud, trustee, projections, overpayment, earnings before interest, taxes, depreciation, amortization (EBITDA), employee stock ownership plan (ESOP), remedy, home service provider

Perez v. Bruister (I)
54 F. Supp. 3d 629, 2014 U.S. Dist. LEXIS 148314
October 16, 2014
US
Federal Court
Mississippi
United States District Court
Dana Messina (DOL/plaintiffs); Z. Christopher Mercer (plaintiffs); Gregory Range (defendants);
Jordan III

Summary

In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.

See Also

Perez v. Bruister (I)

In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.