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Evidence presented at trial determines result
LK comment: We reported on the trial court opinion in this case in the April 1999 issue, and published comments by expert Robert P. Raymond in the June 1999 issue.
Partnership Agreement Not Indicative of Goodwill
The primary issue in this marital dissolution is the value of Husband's partnership interest in his law firm of Hunton & Williams.
Federal Circuit Discredits Expert for Using ‘Discarded’ 25% Rule
Federal Circuit reverses $8.3 million award because expert used the “now discarded” 25% rule of thumb and conducted a “superficial” Georgia-Pacific analysis to reach unrealistic conclusions.
Chancellor's careful valuation upheld; Net asset and rule-of-thumb evidence considered
The issue in this case is whether the chancellor erred in valuing the husband's architecture firm for marital dissolution purposes.
Value of Noncompete Agreement Considered in Bankruptcy Case
The U.S. Court of Appeals for the 7th Circuit considered whether the sale of a company by its 100% shareholder was fair to the company. The company was sold at its asset value plus an amount for a noncompete agreement with the shareholder.
Can a Valuation Firm Serve as Expert Witness?
Chancery says defendant’s valuation expert cannot be corporate entity, i.e., its investment banker, because only a biological person may serve as an expert witness; but firm may substitute a managing director provided he first has adopted expert reports.
Market Cap Approach Subject to Daubert Attack
Expert challenged under Daubert for market cap approach to valuing public-company stock in economic damages case.
Insurance Proceeds Not an Asset
Robert Cartwright was the majority shareholder, primary rainmaker, and driving force behind the law firm of Cartwright, Slobodin, Bokelman, Borowsky, Wartnick, Moore & Harris Inc. (CSB).
Use of Hindsight Considered
In Miriam Debora v. David Ronald Debora, 2006 CanLII 40663 (ON C.A.), decided December 06, 2006, the Ontario Court of Appeal considered whether hindsight was properly considered in assessing the valuation experts’ analyses in this family law case. The hus ...
When One Expert Turns to Three: Can Personal Goodwill Apply to a Commercial Firm?
Arkansas court precludes deduction for "personal goodwill" when valuing a family owned, commercial business in divorce.
Lost Profits From Third-Party Collateral Contracts
The Oklahoma Supreme Court reinstated a jury's damage award for lost profits.
Delaware Chancery Orders Disclosure of Nonexpert Internal Valuations
In discovery dispute over prelitigation valuation-related information, Chancery orders dissenting shareholders to disclose internal assessments of stock value finding information likely is admissible reflecting “real-world” opinion of “astute” investors.
Lack of Control Premium Dooms a Fairness Opinion?
Court finds that, under Delaware law, proxy statement and fairness opinion need not disclose the same material financial information as that relied on in statutory appraisal actions.
Atypical Life Insurance Firm Proves a ‘Sticky Wicket’ for Experts, Court
California approves excess earnings and “formula” approach to valuing atypical life insurance firm, based on industry compensation and revenue data.
As the Nation Goes on Enterprise vs. Professional Goodwill, so Goes Maine?
Maine clarifies its position on enterprise versus personal goodwill.
Court Upbraids Expert Who Discusses Subject Outside Area of Expertise
Under Daubert, federal court curtails trial testimony of defendant’s expert finding he lacked the appropriate qualifications; in a case centering on collateralized debt obligations (CDOs), his financial economics expertise is not even “sufficiently proxim ...
Market Value Approach Better Than Gordon Growth for Failed Bank
Federal Court of Claims accepts market value approach to valuing failed thrift in Winstar case and rejects Gordon growth model for failing to account for bank’s unstable earnings and its alternative investment opportunities in a “non-breach” world.
Court Likens ‘Book of Business’ to Professional Goodwill
Appeals court says financial analyst spouse’s ability to induce clients to follow her when switching employer resembles goodwill in professional practices and represents a divisible community asset; trial court erred when it found analyst’s book of busine ...
Experts Differ by Less Than 50% in Statutory Value of CPA Firm
Court confirms fair value determination of CPA firm based on income, market, and asset-based approaches; a former buy-in transaction concerning the same firm; and a non-compete agreement that effectively transferred personal goodwill to the enterprise.
Actual Transaction Is ‘Gold Standard’ of Valuation, 7th Circuit Says
7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.
Murky Goodwill Testimony Makes Partner Agreement Best Indicator of Value
Trial court was justified in disregarding any commercial goodwill in husband’s interest in a professional practice and relying on partnership agreement, Texas appeals court finds, where goodwill is not accessible and expert testimony as to its existence a ...
More Thorough Expert Persuades Court in Valuing CPA Firm
Court affirms reliance on income approach to value solo CPA practice, including distinction between personal and enterprise goodwill, but rejects trial court’s finding that 25% of the firm was the husband’s separate property, based on his demonstrated int ...
Court rejects adjustment for post-separation efforts
The issue appealed from the Duncan marital dissolution concerned the value of an investment advisory company.
‘Outlandish’ Valuation Supports Possibly Frivolous Claims
Case against auditing firm supported by 'outlandish' damages claims.
Court Reproves Spouse’s Efforts to Lower Value of Community Business
California appellate court affirms trial court’s rejection of husband’s motion to value the community business at separation rather than at trial; the latter is the presumed valuation date under state law and the husband’s request was not “good cause,” bu ...