Business Valuation Update
- Perception Grows of Bias in U.S. Valuation Experts
- Popular Real Estate DLOC Database Is Not Going Away
- Key Points From Hitchner’s Annual BV Update
- What to Glean From the IRS Hiring Binge for BV Experts
Tax-Affecting and Beyond: Dela. Radiology Experts Discuss ‘Landmark’ Case
Eighteen! That is the precise number of minutes the minority shareholders’ forensic and valuation expert, John Mitchell, testified on direct in Delaware Open MRI Radiology,1 a “landmark” case on tax-affecting, fair value pricing, and judicial appraisal.
Aruba Networks: Should Appraisals Rely on Unaffected Market Price?
Delaware appraisal decisions in recent years have effectively endorsed the concept that the price paid in an arm’s-length transaction is “fair value” when there has been a “robust” sales process. This article examines the “troubling” ruling in which the court based its appraisal solely on the unaffected market price.
BVU News and Trends May 2019
A monthly roundup of key developments of interest to business valuation experts.
Gems From the ASA Advanced BV Conference in New York City
Notable sessions at the American Society of Appraisers 2019 Advanced BV Conference included a panel that included a state supreme court judge who answered questions very candidly, tips from IRS representatives, several sessions on the size effect, and more.
BVU News and Trends December 2020
A monthly roundup of key developments of interest to business valuation experts.
Simplified MUM for Determining Personal Goodwill
Editor’s note: The author is a valuation expert and forensic accountant in Florida who uses the multiattribute utility model (MUM), but not in its full form. He uses a streamlined version that has been accepted in court and that may reduce the exposure to ...
Key Points From the VSCPA Forensic and Valuation Conference
An economic update, a new IRS crackdown, goodwill, reasonable comp, healthcare insights, expert testimony, and options are among the topics recapped from the annual two-day Forensic and Valuation Conference hosted by the Virginia State Society of CPAs.
An In-Depth Look at the New D&P Valuation Handbook
The SBBI Valuation Yearbook from Morningstar Inc. and the Duff & Phelps Risk Premium Report were the two most common resources utilized by valuation professionals for estimating the cost of capital through 2013. In September 2013, Morningstar Inc. announ ...
Control Premiums: Application and Analysis
Most valuation specialists would agree that the selection of a control premium requires significant “appraiser’s judgment.” This would be true whether valuing a controlling interest or calculating the inverse of a control premium to value a noncontrollin ...
Calculation Engagements: Still Broken, Still Bad
A response to a rebuttal of the author’s previous article which strongly criticizes the use of calculation engagements.
Market Multiple Adjustments: Get a Grip on GRP
A follow-up of an earlier article that focuses on the attributes of growth, risk, and profitability (GRP) in a benchmark analysis of guideline companies.
How Should You Value Closely Held Businesses During these Crazy Times?
If you think keeping up with the tax laws or international standards is challenging, try valuing closely held businesses when Wall Street is going nuts. Everywhere we look, BV analysts are trying to figure out what to do when valuing a business in this ec ...
Colorado Supreme Court Affirms Court of Appeals; No Marketability Discounts in Dissenters' Rights Cases as a Matter of Law
In this case, Pueblo Bancorporation appealed the Court of Appeals' reversal of the trial court's determination of the shares owned by Lindoe Inc., a minority shareholder of Pueblo.
Court Cites Factors in Revenue Ruling 59-60 to Determine 'Fair Value'; Minority and Marketability Discounts Left to Trial Court's Discretion
The issue in this case is the "fair value" to be assigned to the dissenting shareholders' common stock in Weigel, a company engaged in the business of commercial television broadcasting.
No DLOM Absent Extraordinary Circumstances; Bright-Line Rule Prohibiting Built-in Gains Discount Rejected
The issue, in this case of first impression in Washington, was the propriety of discounts for lack of marketability and built-in capital gains in a dissenters' rights proceeding.
Do Minority Discount and DLOM Apply in ‘Fair Value’ Analysis?
Are discounts for lack of control and marketability appropriate in a “fair value” analysis, i.e., in the context of withdrawing limited partners (and, by analogy, dissenting shareholders)?
Litman a New Landmark Among Cases Considering Restricted Stock Discounts
Federal Court of Claims prefers option-pricing models to quantify marketability discounts for large block of restricted internet stock.
No Discount for Minority Spouse When Divorce ‘Sells’ Interest to Controlling Spouse
Do marketability discounts apply when divorce causes controlling spouse to “buy out” minority spouse?
When ‘Fair Value’ Is Not the Standard of Value in State Shareholder Disputes
Court accepts marketability discounts to determine fairness of corporate stock transaction in shareholder dispute.
Tax Court Declines to Tax Affect S Corp in Gift Transfer Case
In a post-Gross decision, the Tax Court considers tax affecting S corp earnings and also discounts for lack of marketability and control.
More Credible Expert ‘Wins’ Million-Dollar Lawyer Divorce
Divorce court considers combined discounts for lack of marketability and control for husband’s interest in real estate and manufacturing concern.
Further Adventures with the Lack of Marketability Discount
n Further Adventures With the Lack-of-Marketability Discount Bogdanski, John A. Estate Planning, June 1999. In this insightful article, Professor of Law John A. Bogdanski discusses the a ...
NO ESTATE TAX FRACTIONAL INTEREST OR LACK OF MARKETABILITY DISCOUNT ALLOWED FOR JOINTLY OWNED PROPERTY HELD BY MARRIED COUPLE: ESTATE OF YOUNG V. COMMISSIONER
n NO ESTATE TAX FRACTIONAL INTEREST OR LACK OF MARKETABILITY DISCOUNT ALLOWED FOR JOINTLY OWNED PROPERTY HELD BY MARRIED COUPLE: ESTATE OF YOUNG V. COMMISSIONER , Batten, Jonathan S. Th ...
What is "fair value" under Alabama's dissenting shareholder statute?
Caroline Smith Gidiere The Alabama Lawyer , May 2001 The author begins by citing the Alabama dissenting shareholder statute that entitles a qualifying shareholder to "fair value," and notes ...
Valuation Basics and Beyond: Tackling Areas of Controversy
Patrice Leigh Ferguson and John E. Camp. Family Law Quarterly , Vol. 35, No. 2, Summer 2001. This article, which is part of a family law symposium on valuation issues, is divided into several ...