Valuation Combines Elements of Rival Experts’ Cash Flow Analyses

Business Valuation UpdateVol. 20 No. 12
Legal and Court Case Update
December 2014
2899 Chemicals and Chemical Preparations, NEC
325998 All Other Miscellaneous Chemical Product and Preparation Manufacturing
marital dissolution/divorce
divorce, income approach, morningstar, size premium, asset approach, buyout, capitalization rate, closely held corporation, discount for lack of marketability (DLOM), marital estate, minority discount, liquidity, stock purchase agreement, stock value

Browne v. Browne, Jr.
2014 Tenn. App. LEXIS 521
August 27, 2014
US
State Court
Tennessee
Court of Appeals
Shannon Welsh Farr (wife); Randall Benjamin Hebert (husband)
Frierson, II

Summary

Appeals court defers to trial court’s method of applying one expert’s cap rate to other expert’s cash flow analysis when valuing spouse’s interest in closely held company and says “purposeful” application of minority discount has support among valuators.

See Also

Browne v. Browne, Jr.

Appeals court defers to trial court’s method of applying one expert’s cap rate to other expert’s cash flow analysis when valuing spouse’s interest in closely held company and says “purposeful” application of minority discount has support among valuators.