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
Marketability discount not appropriate where comparables were also closely held companies
One issue in this marital dissolution was the fair market value of Northwest Stamping, Inc. (NSI), a closely-held S corporation.
Applying Statutory Fair Value Discounts From Shareholder Dissent to Oppression Cases
Court analogizes shareholder oppression to dissent cases.
Iowa Resolves Clash Between FV and FMV in Banking Appraisal Statutes
Iowa Supreme Court resolves apparent clash between statutory “fair value” standard in business code with provision in banking code that applies FMV standard to appraisal of minority shares in a bank holding company subject to a merger.
50% marketability discount at control level in dissent suit
Minority shareholder James Offenbecher, owned 130 shares of Baron Services, Inc., an Alabama corporation. On March 31, 1998, the Board of Directors approved a merger plan with Baron Services ...
No Discounts in Indiana Fair Value Determination Absent Extraordinary Circumstances
The primary issue in this withdrawing shareholder action was the fair value of the withdrawing shareholder's interest in the law firm, Hopper & Galliher PC (H&G).
Court affirms buy-sell agreement's impact on share price
Wife appeals the trial court's distribution of property, and claims husband's 293 shares of closely-held stock is community property.
Lack of evidence prompts court to ignore tax impacts when valuing partnership interest; ‘family discount’ for transfer of corporate shares also ignored
Husband owned a 27.5 percent interest in a partnership that was sold as part of a succession transaction and for which he received two notes, the face value of which totaled $469,156—which the trial court found constituted an inflated price.
Extraordinary Circumstances Warrant Marketability Discount in Buyout
In November 1999, the Minnesota Court of Appeals ruled, in a case of first impression in Minnesota, that a marketability discount should not be applied to determine the fair value of Brian Follett's one-third interest in Advanced Communication Design Inc. (ACD).
S corporation retained earnings not marital property; 28% marketability discount upheld
Among the issues for the court to decide were whether wife's interest in an accumulated adjustment account (AAA) of an S corporation was marital property, and whether the trial court erred in applying a marketability discount to wife's interest in a limited partnership.
Astleford Has It All: Latest Tax Court Case on FLP Discounts, Data, and More
In a lengthy opinion, the Tax Court considers the testimony of six appraisal experts, four for the taxpayer and two for the Internal Revenue Service.
Usurpation Damages Subject to 'Extraordinary Circumstances'
An earlier Court of Appeals opinion in this case was abstracted in the September 2000 BVU.
Adams v. United States (I)
The dispute in this case focuses on disagreement regarding discounts that the court should apply to reach the actual value of a 25% assignee interest.
Alabama Adopts Fair Value Standard in Divorce, Under Broader Equitable Standard
Alabama court applies fair value standard in divorce, under wider equitable value standard.
9th Circuit Vacates and Remands Tax Court's Valuation in Mitchell
In this ongoing estate tax proceeding, the Estate of Paul Mitchell (Estate) appealed the U.S. Tax Court's decision allowing the Commissioner of the IRS to assess an additional $2,404,571 in federal estate taxes.
Disputes Over Discounts Complicates Stock Valuation in Divorce
Disputes over discounts, inclusion of assets, complicates valuation of closely held stock in divorce.
DLOM Major Issue; Tax Court 'Splits the Baby'
At decedent’s death, she owned 3,276 shares of Royal Bancshares Inc. (RBI), or 5.09% of the outstanding RBI shares.
District Court Applies Discounts to Partnership Interest on Remand
The Mendenhall estate consisted of a 25% assignee interest in Taylor Properties, a dissolved Texas general partnership.
Discounts Do Not Apply to FLP Created to Disinherit Spouse
Discounts do not apply to an FLP created to disinherit spouse.
FLPs Shall Not Be Disregarded for Gift Tax Purposes
In this case, the Tax Court determined that a Texas family limited partnership could not be ignored for valuation purposes and that § 2704(b) did not apply.
Potential Environmental Liability Relevant to Fair Market Value
This is another Tax Court opinion with a thorough discussion of business valuation methods, discounts and premiums, and relevant factors to be considered.
New York Dissenter Case Rejects Discount for Minority and Accepts Unmarketability Discount
The companies owned commercial income-producing properties.
Second Post-Bernier Court Says Income Approach May Be Preferred, But Not Exclusive
Massachusetts court precludes discounts in valuing marital business in divorce, and says that while income approach is preferred, net asset value may be appropriate in the absence of determinable market value.
Kentucky Struggles With Majority Rule to Value Goodwill in Divorce
Kentucky court finds personal goodwill value of the husband’s 25% interest in a regional anesthesiology practice to be negligible.
Capitalization of Earnings Method Sans Discounts Upheld in Fair Market Value Determination
One of the primary issues in this marital dissolution appeal was the valuation of 310 shares of Cattron, Inc. stock, a radio communications company. In its analysis, the Pennsylvania Superio ...
Fair Value Standard in Massachusetts Precludes Any Discounts in Divorce
Massachusetts Court of Appeals confirms that the fair value standard in divorce cases precludes application of any discount, either for lack of marketability or lack of control, for any closely held company, even highly restricted shares in family owned b ...