Top Expert Answers for Today’s Tough BV Questions
In BVR’s recent webinar, Power Panel: Live Expert Answers for Today’s Tough BV Questions, experts Jay E. Fishman, Michelle Gallagher, Ken Pia, and Jeffrey Tarbell covered various hot topics that affect the business valuation profession. These questions ranged from the basics, such as “What will 2021 look like?” to “What are your thoughts on the current state of the ESOP litigation environment particularly with the new administration coming in?” Here, we summarize five of the questions and answers. For more information, be sure to check out the complete recording and transcript of the session.
U.K. and U.S. courts differ on COVID-19 business interruption claims
A recent article in the New York Times reports that the U.K. Supreme Court recently ruled that insurers must cover COVID-19-related losses.
Business Valuation Update Yearbook, 2021 Edition
January 2021 Hardcover, PDF
BVR (editor)
Business Valuation Resources, LLC
Intellectual Property Valuation Case Law Compendium, Fourth Edition
January 2021 Hardcover, PDF (580 pages)
BVR (editor)
Business Valuation Resources, LLC
Prepare now for future business interruption claims due to COVID-19
Now is the time to educate yourself on how to calculate damages from business interruption due to COVID-19, advised Kerrie Merrifield (Axiom Forensics) at the recent NACVA and the CTI’s 2020 Financial Valuation Virtual Conference.
New edition of landmark damages guide now available
The 6th edition of the Comprehensive Guide to Economic Damages has just been released.
The Comprehensive Guide to Economic Damages, Sixth Edition (Two Volumes)
December 2020 Hardcover, PDF
Bill Scally, Jimmy Pappas, Jonathan Dunitz, Nancy Fannon, Steve Veenema
Business Valuation Resources, LLC
Back to Basics for Lost Profit Damages Calculations Amid COVID-19
Does the pandemic have an impact on the measurement of future lost profits, particularly where the underlying breach occurred before the pandemic arose? This is an area of law that could change as courts begin to face disputes in the context of a COVID-19 world. In the meantime, this article gives a primer on calculating lost profits damages.
Alleged reveal of secret KFC recipe points up valuation question
Ever wonder what those secret 11 herbs and spices are in KFC’s original recipe fried chicken?
Precision Kidd Acquisition, LLC v. Pass
In merger-related damages case, court upholds damages based on profits lost from key client’s termination of supply agreement with seller company; trial court properly rejected buyer expert’s DCF-based loss analysis which, among other flaws, overstated value of lost contract to seller company.
Proper Damages Measure Is Lost Profits Calculation, Not DCF-Based Loss Analysis
In merger-related damages case, court upholds damages based on profits lost from key client’s termination of supply agreement with seller company; trial court properly rejected buyer expert’s DCF-based loss analysis which, among other flaws, overstated value of lost contract to seller company.
In COVID-19 Business Interruption Case, Court Finds Business Cannot Show Insurer’s Coverage Denial Breached Contract
In business interruption case resulting from mandatory shutdowns to control COVID-19, court finds plaintiff chiropractic clinic failed to show insurer breached its policy; court says plaintiff did not demonstrate “tangible damage” to property and failed to overcome policy’s express virus exclusion.
Turek Enterprises, Inc. v. State Farm Mutual Automobile Insurance Co.
In business interruption case resulting from mandatory shutdowns to control COVID-19, court finds plaintiff chiropractic clinic failed to show insurer breached its policy; court says plaintiff did not demonstrate “tangible damage” to property and failed to overcome policy’s express virus exclusion.
Excelling in Litigation and Dispute-Related Valuations: How to Not Get Caught Bringing a Knife to a Gunfight
Preparing a valuation analysis can be difficult enough, let alone defending it against an opposing party questioning your every move. It is important for valuation experts to know how their valuations may be challenged by other experts and work to effectively address these issues pre-emptively. Presenters Sean Saari and Bob Ranallo discuss how to prepare yourself, and your valuation report, when you know your work will be subject to review and critique in a litigation ...
Judicial panel resistant to consolidating COVID-19 business interruption litigation
Responding to requests by plaintiffs who are pursuing lawsuits against insurers for COVID-19-related business losses, the Judicial Panel on Multidistrict Litigation (JPML Panel) recently rejected two proposals for centralization.
D&P’s de Gray releases new financial damages guide for lost value calculations
Neil de Gray, a director in the Toronto office of Duff & Phelps, makes a strong argument for the use of business valuation professionals in any calculation of damages in his new guide The Financial Damages Model for Loss of Value, published late last month by Lexology.
Court ‘Sympathizes’ With Businesses Claiming COVID-19-Related Losses but Finds No Coverage Under Policy
In a business interruption case resulting from mandatory shutdowns to control COVID-19, court dismisses plaintiff barbershops’ claims against insurance company; plaintiffs failed to show accidental direct physical loss to premises as required for coverage and did not overcome express virus exclusion.
Diesel Barbershop, LLC v. State Farm Lloyds
In a business interruption case resulting from mandatory shutdowns to control COVID-19, court dismisses plaintiff barbershops’ claims against insurance company; plaintiffs failed to show accidental direct physical loss to premises as required for coverage and did not overcome express virus exclusion.
Rose’s 1, LLC v. Erie Ins. Exch.
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
Court Says Restaurants Fail to Meet Requirements for COVID-19-Related Business Interruption Coverage
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
Deviations From Historical Cash Flow and Their Implications to Effective Discount Rates for Lost Profits Analyses
The authors address the direct relationship between projected cash flows (that is, those being measured for risk) and discount rates in a lost profits analysis.
Michigan court decides COVID-19 business interruption claim; many more cases in the pipeline
COVID-19-related business interruption cases are winding their way through the court system, and one state court, in a matter of first impression, recently issued a decision.
Accounting fraud causes Berkshire Hathaway subsidiary to overpay for sinking German manufacturer
Financial experts were unable to prevent a Berkshire Hathaway subsidiary, Precision Castparts Corp. (PCC), from acquiring a German family business for five times as much as the collapsing company was worth, recent articles in the New York Times and the German newspaper Handelsblatt report.
Damage Valuation in a Financial Advisor Termination Case
In a wrongful termination of a financial advisor, the damage calculation involves a determination of the value of the advisor’s book of business at the time of termination as well as consequential and any special damages.
Expert’s Damages Calculation Based on Extensive Experience in Field Is Reliable, Court Finds
Court admits survey evidence, finding expert’s methodology conformed to accepted principles in the field and noting that technical objections go toward weight; court also admits both parties’ damages experts, finding they had extensive experience in the field and were both qualified; questions as to reliability of method “can be explored at trial.”