Valuators in Taking Case Disagree Over Measure of Damages

Business Valuation UpdateVol. 21 No. 4
Legal and Court Case Update
April 2015
5461 Retail Bakeries
722513 Limited-Service Restaurants
condemnation
income approach, normalization, asset approach, capitalization of earnings, capitalization rate, fair market value (FMV), market approach, earnings, rules of thumb, discretionary cash flow, build-up method, valuation

City of Baton Rouge v. Jay’s Donuts, Inc.
2014 La. App. Unpub. LEXIS 722
December 17, 2014
US
State Court
Louisiana
Court of Appeals
Dr. Daryl Burckel (City/appellee); Michael Daigle (company/appellant)
Theriot

Summary

Court deems expert’s discretionary cash flow analysis an appropriate formula for determining loss to owner of expropriated business but says compensation calculation may be based on other methods, including rule of thumb guide for selling donut shop.

See Also

City of Baton Rouge v. Jay’s Donuts, Inc.

Court deems expert’s discretionary cash flow analysis an appropriate formula for determining loss to owner of expropriated business but says compensation calculation may be based on other methods, including rule of thumb guide for selling donut shop.