Treatment of Debt Skews Valuation of Franchise Business

Business Valuation UpdateVol. 21 No. 4
Legal and Court Case Update
April 2015

Access the Full Article

This article is available with a subscription to any of these products:
Already a subscriber?  Login
This article is also available for purchase. (1,672 words)   Add to Cart >>
Need help? Contact us:
1-503-479-8200 ext 2 or sales@bvresources.com
5812 Eating and Drinking Places
722513 Limited-Service Restaurants
marital dissolution/divorce
discount rate, divorce, expert testimony, cash flow, discounted cash flow (DCF), franchise, limited liability company, projections, debt
Freihage v. Freihage
2015 Ill. App. Unpub. LEXIS 14
January 7, 2015
US
State Court
Illinois
Appellate Court
Martin Magida (husband); Ronald Cressman (wife)
Wright

Summary

Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.

See Also

Freihage v. Freihage

Full Text of Court Cases
January 7, 2015

Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.