Dodgy Real Estate Valuation Compromises Dependent Business Valuation

Business Valuation UpdateVol. 22 No. 6
Legal and Court Case Update
June 2016
5511 Motor Vehicle Dealers (New and Used)
441110 New Car Dealers
judicial dissolution
expert testimony, fair value, income approach, net asset value, buyout, fair market value (FMV), market approach, shareholder agreement, reliability, dissolution

In re Discontinuance & Disposition of P.K. Smith Motors, Inc.
2016 La. App. LEXIS 475
March 9, 2016
US
State Court
Louisiana
Court of Appeals
David Brewer, real estate appraisal; Ronald Gagnet, business valuation (petitioner); Michael Graham, real estate appraisal; Larry Sikes, business valuation (defendants)
Calloway

Summary

Trial court did not err when it enforced shareholder agreement lacking purchase price and based buyout price on defense expert testimony; opposing expert committed “severe flaws in his methodology and the valuations based upon them,” appeals court says.

See Also

In re Discontinuance & Disposition of P.K. Smith Motors, Inc.

Trial court did not err when it enforced shareholder agreement lacking purchase price and based buyout price on defense expert testimony; opposing expert committed “severe flaws in his methodology and the valuations based upon them,” appeals court says.