Is a Buy-Sell at Book Value Unconscionable, When FMV Is 60x Greater?
Appellate court rules that a buy-sell provision at book value is not unconscionable and confirms buyout of deceased partner, despite leaving remaining partner with a fair market value nearly 60 times greater than buyout price.
Estate of Cohen v. Booth Computers
Appellate court rules that a buy-sell provision at book value is not unconscionable and confirms buy-out of deceased partner, despite leaving remaining partner with a fair market value nearly 60 times greater than buy-out price.
Dawyot v. Catawba Capital Mgmt., Inc.
In buyout dispute, court sets aside third-party appraisal performed pursuant to redemption agreement; court says final appraisal report contains at least one “palpable error” related to normalization of earnings that had a significant effect on the valuation; appraiser did not testify at trial.