Court Affirms ‘Market Valuation Assessment’ of Family Businesses

Business Valuation UpdateVol. 20 No. 7
Legal and Court Case Update
July 2014

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1522 General Contractors-Residential Buildings, Other Than Single-Family
236116 New Multifamily Housing Construction (except For-Sale Builders)
marital dissolution/divorce
income approach, capitalization of earnings, book value, market value, officer compensation, irs revenue ruling 59-60
Prevost v. Prevost
2014 Minn. App. Unpub. LEXIS 288
April 7, 2014
US
State Court
Minnesota
Court of Appeals
Leonard Waschko (wife); Richard C. Berning (husband)
Hudson

Summary

Expert’s “market valuation assessment” to estimate sale price of husband’s two businesses satisfies principles for valuation of closely held company, says appeals court; case law looks to IRS Revenue Ruling 59-60, but disfavors use of book value.

See Also

Prevost v. Prevost

Full Text of Court Cases
April 7, 2014

Expert’s “market valuation assessment” to estimate sale price of husband’s two businesses satisfies principles for valuation of closely held company, says appeals court; case law looks to IRS Revenue Ruling 59-60, but disfavors use of book value.