‘Hybrid’ Approach to Quantify Loss of Beer Franchise Contracts

Business Valuation UpdateVol. 21 No. 10
Legal and Court Case Update
October 2015

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5182 Wine and Distilled Alcoholic Beverages
424820 Wine and Distilled Alcoholic Beverage Merchant Wholesalers
economic damages & lost profits
damages, discount rate, expert testimony, weighted average cost of capital (WACC), discounted cash flow (DCF), fair market value (FMV), franchise, market-based approach, multiple, comparable transactions method, diminution in value, lost business value, gross profit
Tri Cnty. Wholesale Distribs. v. Labatt USA Operating Co. LLC
2015 U.S. Dist. LEXIS 81914
June 24, 2015
US
Federal Court
Ohio
United States District Court
Lamont Seckman (plaintiffs); Dr. Samuel Kursh (defendants)
Marbley

Summary

Court uses hybrid approach to quantify diminished value in business resulting from franchisees’ loss of beer brands; it means determining FMV of franchise contracts by way of DCF and adding loss in value of other assets directly related to loss of brands.

See Also

Tri Cnty. Wholesale Distribs. v. Labatt USA Operating Co. LLC

Full Text of Court Cases
June 24, 2015

Court uses hybrid approach to quantify diminished value in business resulting from franchisees’ loss of beer brands; it means determining FMV of franchise contracts by way of DCF and adding loss in value of other assets directly related to loss of brands.

This article also appears in:
Business Valuation UpdateVol. 21 No. 10
The Comprehensive Guide to Economic Damages, Seventh Edition