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
NY Court Ratifies DLOM in Fair Value of Real Estate Companies
In dissenting shareholder case, appellate court affirms application of DLOM to statutory fair value of real estate holding companies, as well as present-value discount for taxes on built-in gains (BIG).
Post-divorce distribution of appreciation is impermissible
The issue in this marital dissolution was the value of husband’s business enterprises.
Fair Value Is Pro Rata Share of Sale Price in Arm's-Length Asset Sale
In this case of first impression under the Arizona dissenters' rights statute, the corporation appealed a trial court ruling accepting the dissenting shareholders' expert's conclusion of fair value over that of the corporation's expert.
Goodwill included in Virginia law firm partnership valuation
This case is confusing to read because there are mixed, and sometimes seemingly contradictory, references to both the appropriate standard of value and the valuation methodologies used by the respective appraisers.
Tax Court Finds Good Family Gives Rise to Good FLP Case
Tax Court finds legitimate, nontax business purpose in FLP’s active management and preservation of timber, and its protection against creditors.
New Jersey Follows Delaware Law in Dissenters' Rights Case
Plaintiff minority dissenting shareholders appealed, and defendant corporation cross-appealed, the trial court valuation of corporate stock.
'Fair Value' Relevant to Fiduciaries' Liability for Breach of Duty
Plaintiffs filed this shareholder derivative action seeking damages against defendant Telemachus Demoulas for fraud, conversion, and breach of fiduciary duty arising out of his conduct as co-executor of the estate of George Demoulas.
Court Upholds Discounts Imposed by Arbitrator
Limited partners put interests in a cable television partnership to the general partner under put and call provisions of the partnership agreement.
Divorce Court Discredits Experts for Manipulating Data
Divorce court finds that husband manipulated assets of trucking company during divorce to lower its net asset value, and discredits husband’s expert for relying on manipulated data and applying a 10% marketability discount.
Insurance Agency Value Turns on Renewals, Contingent Liability, and Control Discount
Insurance agency valuation turns on renewal rate, discounts, distributions, and contingent liabilities.
No Automatic Bar to Minority Discount in Divorce Cases
Appeals court says state law does not bar use of minority share discount in divorce cases and declines to impose a bright-line rule; rather, the trial court has to consider interest holder’s level of control and likelihood of sale before use of discount.
Joint Experts in Divorce: When Should a Spouse Seek a Second Opinion?
Court confirms appropriateness of applying a 50% marketability discount to the post-marital value of a steel business but not to its premarital valuation, citing the changes in the steel industry and company-specific factors.
Lottery Winner Attempts Second Win on Discounted Present Value of Annuity
Court assesses whether fair market value of nonmarketable annuity varies from present value of IRC annuity tables.
Two Cases Question FLPs as Estate Planning/Asset Protection Devices
IRS allowed 33% combined discount for FLP—but court rules that state (Pennsylvania) Department of Revenue does not have to defer to IRS calculations to disallow discount.
Court Labels Experts as Unexperienced, Revalues Company Itself
The issue in this estate tax case was the value of a 20% interest in Thomas Publishing Co. (TPC), a producer and seller of industrial and manufacturing business guides and directories.
Court Forced to Reach Conclusion Based on Weak Evidence
The issue in this case is the value of minority shares of Kosman, Inc., a family holding company owning shares of stock of small banks.
Is a 35% Minority Discount Appropriate in a Statutory Buyout of Real Estate Partnership?
Level of minority discount, fair market value standard, stressed in case involving a statutory buyout of a real estate partnership.
Husband’s version of the facts not supported by the record
Husband and wife were married in 1979, and wife filed for divorce in 2000.
Revised Valuation Prompts Court to Revisit Ruling
Court reconsiders previous opinion and accepts revised appraisal value.
Case Update: Prior Opinion Vacated Due to Judicial Disqualification
In the September 2002 issue of BVU, we abstracted the case of Powell v. Anderson, 2000), a case of minority oppression involving a claim for usurpation of a corporate opportunity.
40% 'Aggregate' Discount: Marketability, Control, and Unrealized Capital Gains
The IRS determined that decedent's estate owed amounts for estate tax and gift tax deficiencies.
Tax Court Rejects Use of Single 'Similar' Comparable
This issue in this estate tax matter was the fair market value of decedent's 630 shares (a 39.62% interest) in F. Korbel & Bros. Inc. on Feb. 15, 1995, her date of death.
Tax Court Crafts Its Own Cost-to-Partition Approach in Valuing Fractional Interests
Tax Court rejects approaches by both IRS and taxpayer expert for valuing undivided half-interests in vacation home, ultimately concluding combined discount of 17% under weighted, partition and nonpartition scenarios.
Federal Court Fashions ‘Unique’ Pricing Remedy in Shareholder Oppression Case
An oppressed minority shareholder sought judicial appraisal of the First Hartford Corp., a company that managed and developed real estate through several subsidiaries, with several attributes that made it unique.
Value of minority shares' value at issue
The husband appealed the property distribution of the dissolution of marriage decree.