Harvey v. Harvey (In re Michael S.)
In this divorce case, on appeal, the California appellate court rejected a discount for taxes not immediate and specific and allowed a DLOM regarding the value of the wife’s one-half interest in the jointly owned business. The court also determined that “the [trial] court impliedly made the factual findings necessary to support its ruling regarding Cynthia’s breach of fiduciary duty claim.” Finally, the appeals court determined that the trial court had the authority to set its own terms for payment of the equalization amount to the wife.
In a Divorce Case, the California Court of Appeal Rejects Discount for Taxes Not Immediate and Specific But Allows a DLOM
In this divorce case, on appeal, the California appellate court rejected a discount for taxes not immediate and specific and allowed a DLOM regarding the value of the wife’s one-half interest in the jointly owned business. The court also determined that “the [trial] court impliedly made the factual findings necessary to support its ruling regarding Cynthia’s breach of fiduciary duty claim.” Finally, the appeals court determined that the trial court had the authority to set its own terms for payment of the equalization amount to the wife.
Shareholder Approval ‘Cleanses’ Potential Undervaluation
Per business judgment rule, court dismisses shareholder complaint that board members breached fiduciary duties by rushing to sell entire company where financial advisor had stated separate sales of company’s various business units would maximize value.
In re OM Group, Inc. Stockholders Litig.
Per business judgment rule, court dismisses shareholder complaint that board members breached fiduciary duties by rushing to sell entire company where financial advisor had stated separate sales of company’s various business units would maximize value.
Shareholder Approval ‘Cleanses’ Potential Undervaluation
Per business judgment rule, court dismisses shareholder complaint that board members breached fiduciary duties by rushing to sell entire company where financial advisor had stated separate sales of company’s various business units would maximize value.
Valuation Combines Elements of Rival Experts’ Cash Flow Analyses
Appeals court defers to trial court’s method of applying one expert’s cap rate to other expert’s cash flow analysis when valuing spouse’s interest in closely held company and says “purposeful” application of minority discount has support among valuators.
Browne v. Browne, Jr.
Appeals court defers to trial court’s method of applying one expert’s cap rate to other expert’s cash flow analysis when valuing spouse’s interest in closely held company and says “purposeful” application of minority discount has support among valuators.
More Support for Using More Than One Method (DCF) in Current Valuations
Bankruptcy court finds total enterprise value for large specialty chemical company based on DCF as well as comparable companies and transactions analysis.
In re Chemtura Corp. (I)
Bankruptcy court finds total enterprise value for large specialty chemical company based on DCF as well as comparable companies and transactions analysis.
Better Industry and Company Experience Persuade Court on DCF, Discounts in Divorce
Divorce court finds the expert with more industry and company experience is the more credible, adopting his DCF with a 20% discount for lack of marketability.
Trahan v. Trahan
Divorce court finds the expert with more industry and company experience is the more credible, adopting his DCF with a 20% discount for lack of marketability.
Phillip J. Barker v. Vulcan Chemical Technologies, Inc., et al.
The California Court of Appeals for the 3rd District affirmed an arbitrator’s award of lost profits in this breach of contract case that resulted in the destruction of Barker’s business.