Where to start with the delicious buffet of valuation issues presented in Fair v. Fair , a Louisiana Court of Appeals divorce case. The primary issue in the case was the valuation of the husband’s community estate business known in the case as SIS. The business sells surgical medical equipment GE made. Read more >>

The 2021 Discount for Lack of Marketability Study provides objective rate of return measures to implement the Johnson/Park empirical method for determining a discount for lack of marketability (DLOM) for the valuation of interests in privately held corporations and partnerships. This report instantly provides you with the most current DLOM rate of return information including a thorough explanation and example on how to apply these data. Read more >>

BVR’s recent survey on methodology and practice for estimating a discount for lack of marketability (DLOM) garnered over 200 responses. After analyzing the results, we identified several red flags that were worthy of further exploration. Read on to learn more! Read more >>

The Indiana Court of Appeals and the South Carolina Supreme Court recently issued noteworthy rulings on the appropriateness of discounts in valuing minority interests. The contexts in which the issue arose were different, but both situations amounted to a compelled buyback of shares. Read more >>

A recent Tennessee appeals court decision found that the trial court presiding over a drawn-out divorce had discretion to apply a marketability discount when it valued the owner-spouse’s interest in two companies in 2016. Read more >>

A new e-book on DLOMs and the IRS that offers five straightforward tips from former IRS territory manager Michael Gregory to reduce the chance of IRS audits on your business valuations in the future. Read more >>

Comments are due by Aug. 7, 2017 on an IRS notice that puts the proposed Section 2704 regs on the chopping block. Read more >>

When and whether to apply a discount for marketability in divorce valuations has been an open question in Tennessee, owing to some confusing court rulings. However, a recent amendment to the Tennessee Code seeks to provide clarity to valuators handling divorce cases in this jurisdiction. Read more >>

The 11th Circuit recently affirmed a four-year-old Tax Court valuation of a revocable trust’s interest in a limited partnership. The linchpin in the valuation was the marketability discount. Read more >>

In adjudicating a New Jersey family dispute that escalated into an oppressed shareholder action, the trial court recently found the oppressing shareholder had created a situation that mandated the application of a discount for marketability (DLOM) in order to achieve a “fair and equitable” outcome. Read more >>

A blue-ribbon panel of experts review the primary DLOM methods and reveal new survey data on which methods valuators rely on most. Read more >>

Is there a consensus yet on the method to use for estimating a discount for lack of marketability (DLOM)? Find out by taking a short survey. Read more >>

Over the past week, over 100 new comments have been submitted to the IRS about the controversial proposed Section 2704 regs designed to rein in estate tax valuations. That brings the total comments to almost 200, but it's hoped that many more will come in before the due date of November 2. Read more >>

At the ASA Advanced Business Valuation Conference last week in Boca Raton, Fla., valuation practitioners told us that they are seeing an increase in valuation engagements triggered by the proposed Section 2704 regulations. They expect the increased business to gain steam as the regs continue to sink in with attorneys, wealth planners, and clients. Read more >>

The accounting, valuation, and legal professions are hard at work to defeat the Treasury Department's proposed Section 274 regulations. The new regs would curtail, if not entirely eliminate, valuation discounts in family-controlled entities. Read more >>

Well-crafted comments can change the course of the controversial proposed IRC Section 2704 regs designed to curb estate valuation discounts. There's a concern that, if these regs are finalized as proposed, the federal government will go after valuation discounts in other contexts. Comments are due by November 2, and there's a public hearing in Washington on December 1. Read more >>

A number of leading valuation experts have called for the profession to speak with one voice and eliminate the confusion over the use of discounts. One valuation expert offers up some nomenclature and—more importantly—a framework that he hopes will help with this thorny issue. Read more >>

So much for clarity. A recent Tennessee appeals court decision hinged on the issue of whether a marketability discount was appropriate in the valuation of the husband’s interests in three real estate development partnerships. In reviewing the trial court’s analysis, the appeals court suggested that the lower court misunderstood the principle behind DLOM but ultimately upheld the lower court’s findings. The resulting decision leaves valuators in a pickle as to when to apply the discount and at what rate. Read more >>

Shannon Pratt, Roger Grabowski, Jim Hitchner, Nancy Fannon, and the Honorable Judge David Laro of the Tax Court are just a few of valuation thought leaders dubbed by NACVA as “industry titans” who gave presentations at the organization’s 25th anniversary conference in San Diego Read more >>

John Finnerty (Alix Partners) has developed a new version of his average-strike put option DLOM model that can be generalized to accommodate a restriction period of any particular fixed length. He presented the new model during a BVR webinar and asked the audience for comments and suggestions. He would also like some real data for testing purposes. Read more >>