Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
Valuing Two Tough Aspects of Damages: Pricing and Discount Rate
Bankruptcy court finds that the discount rate related to a contract damages claim should incorporate the risk factors present at the time of contract execution, making risk-free rate inappropriate.
BV and MAI Appraiser Go Head-to-Head on Restaurant Discount Rate
Federal district court prefers discount rate for restaurant lost future rents based on industry data and research.
Court Adopts Expert’s Interest Rate, Based in Part on Butler Pinkerton Calculator
Bankruptcy court finds “cramdown” interest rate equals at least 6.4%, based on current commercial lending “realities” as well as expert’s application of debtor-specific risk factors, including benefits of bankruptcy and single lender.
Billion-Dollar Transfer Pricing Case Turns on Testimony of ‘Incredible’ IRS Experts
IRS loses billion-dollar transfer pricing case based on expert’s wrong determinations of cost of capital and more.
Special Legal Report: Important Delaware Chancery Case on Terminal Growth Rate, ERP, Betas, and Best Experts
Delaware Chancery adopts supply-side equity risk premium and discusses appropriate terminal growth rate, tax rate, and beta in the statutory fair value appraisal of Russian telecomm company.
Expert’s ‘Unsupportable’ Inputs Undermine DCF Analysis and Credibility
District court finds expert “forced” spun-off company’s low value by calculating a DCF value that “is low in the extreme and implied an incredibly low trading multiple for the [subject]”; the expert selected “the most pessimistic projections” of future pe ...
Bankruptcy Court Conducts Extensive Valuation Findings of Hospital in Fraudulent Transfer Case
Bankruptcy Court conducts extensive valuation findings of hospital in fraudulent transfer case.
Chancery Validates Tax Affecting in Fair Value Case
In statutory appraisal, Chancery affirms need for tax affecting in calculating projected free cash flows for DCF model; “operative metric” under Kessler model is amount of funds available for distribution to shareholders, not actual distributions made.
Lottery Case and Effect of Transfer Restrictions on Valuing Annuities
6th Circuit joins majority of federal courts in finding that IRS annuity tables are appropriate when valuing nonassignable lottery payments for estate tax purposes.
Pitfalls in fairness opinion valuations
This article is excerpted from a longer paper prepared by Gil Matthews for presentation at the ABA Family Law Section's National Business Valuation Conference to be held May 3-5 in San Francisco, Cali ...
In re PLX Tech. Stockholders Litig.
Chancery says plaintiffs proved directors breached fiduciary duties and duty to disclose but failed to prove damages; court rejects plaintiff expert's DCF analysis, noting problematic projections and beta; “real-world market evidence” shows company was not worth more than deal price.