Sale to Mother Is Not an Arm’s-Length Transaction

Business Valuation Update BVLaw
Legal and Court Case Update
August 24, 2000
7532 Top, Body, and Upholstery Repair Shops and Paint Shops
811121 Automotive Body, Paint, and Interior Repair and Maintenance
marital dissolution/divorce
fair value, going concern, marital dissolution

Barnes v. Sherman
758 A.2d 936, 2000 D.C. App. LEXIS 199
Federal Court
District of Columbia
Court of Appeals
Barnes made own valuation


The D.C. Court of Appeals determined that a sale between a mother and a son that occurred two days before trial was not made at arm's-length. Since the sale was not made at arms-length, the sale price was not indicative of the business’ value. It addition ...

See Also

Barnes v. Sherman

At issue is the valuation of the couple's auto body business.