Auto Dealerships, New Cars
This industry comprises establishments primarily engaged in retailing new automobiles and light trucks, such as sport utility vehicles, and passenger and cargo vans, or retailing these new vehicles in combination with activities, such as repair services, retailing used cars, and selling replacement parts and accessories.
Buckley v. Carlock
The Tennessee appellate court affirmed the Chancery Court’s determination of the value of an oppressed minority shareholder’s interest in an “ultra-high-end” car dealership. The valuation of an expert utilized the “blue sky method,” a rule of thumb method, to value the dealership and ultimately the minority interest. The Chancery Court conducted a hearing on which it heard valuation expert testimony. The appellate court affirmed the Chancery Court’s valuation and its methodology since it was generally accepted by the financial community.
Appellate Court Affirms Use of the ‘Blue Sky Method,’ a Rule of Thumb, to Value a Minority Interest in an Oppression Case
The Tennessee appellate court affirmed the Chancery Court’s determination of the value of an oppressed minority shareholder’s interest in an “ultra-high-end” car dealership. The valuation of an expert utilized the “blue sky method,” a rule of thumb method, to value the dealership and ultimately the minority interest. The Chancery Court conducted a hearing on which it heard valuation expert testimony. The appellate court affirmed the Chancery Court’s valuation and its methodology since it was generally accepted by the financial community.
Bates v. Bates
In appreciation case, appeals court says it was error to value owner’s separate, minority interest in car dealership based on buy-sell agreement; however, alternate valuation by nonowner spouse’s expert offered based on standard methods, including use of discounts, provided “appropriate valuation.”
Buy-Sell Stock Agreement Does Not Determine Value of Owner Spouse’s Separate Property
In appreciation case, appeals court says it was error to value owner’s separate, minority interest in car dealership based on buy-sell agreement; however, alternate valuation by nonowner spouse’s expert offered based on standard methods, including use of discounts, provided “appropriate valuation.”
Puklich v. Puklich
In buyout dispute related to various family businesses, including auto dealership, high court finds trial court was authorized to adjust value finding to account for majority shareholder’s oppressive conduct; case law supported rejection of discounts in valuing minority shareholder’s interest.
High Court Approves of Trial Court’s Rejection of Discounts in Fair Value Determination
In buyout dispute related to various family businesses, including auto dealership, high court finds trial court was authorized to adjust value finding to account for majority shareholder’s oppressive conduct; case law supported rejection of discounts in valuing minority shareholder’s interest.
Multiples Used to Estimate Automotive Dealerships Market Value
Practitioners use goodwill multiples for valuing automobile dealerships. In this paper, the valuation accuracy of five goodwill multiples and seven more traditional multiples that can be used for estimating the market value of the equity of car dealerships is assessed during the 2010–2016 period. Our results support that the goodwill multiples provide the smallest estimation errors in valuing the market value of automobile dealerships.
Judicial Appraisal Lacks Valuation Evidence and Gets Dinged on Appeal
Appeals court scraps judicial appraisal, finding it was not based on competent evidence; in valuing dissenting shareholder’s interest in auto dealership, trial court ignored expert opinions but failed to detail methodology supporting its valuation.
Judicial Appraisal Lacks Valuation Evidence and Gets Dinged on Appeal
Appeals court scraps judicial appraisal, finding it was not based on competent evidence; in valuing dissenting shareholder’s interest in auto dealership, trial court ignored expert opinions but failed to detail methodology supporting its valuation.
Lally Orange Buick Pontiac GMC, Inc. v. Sandhu
Appeals court scraps judicial appraisal, finding it was not based on competent evidence; in valuing dissenting shareholder’s interest in auto dealership, trial court ignored expert opinions but failed to detail methodology supporting its valuation.
Dodgy Real Estate Valuation Compromises Dependent Business Valuation
Trial court did not err when it enforced shareholder agreement lacking purchase price and based buyout price on defense expert testimony; opposing expert committed “severe flaws in his methodology and the valuations based upon them,” appeals court says.
Parties’ Valuation Contract Precludes Review of Minority Discount
In share buyback case where parties agree to retain joint appraiser, whom they know from past appraisals of company, and commit to be bound by appraiser’s valuation, court declines to consider seller’s challenge to appraiser’s use of minority discount.
In re Discontinuance & Disposition of P.K. Smith Motors, Inc.
Trial court did not err when it enforced shareholder agreement lacking purchase price and based buyout price on defense expert testimony; opposing expert committed “severe flaws in his methodology and the valuations based upon them,” appeals court says.
Curran v. Curran
In share buyback case where parties agree to retain joint appraiser, whom they know from past appraisals of company, and commit to be bound by appraiser’s valuation, court declines to consider seller’s challenge to appraiser’s use of minority discount.
What ‘FMV’? Bankruptcy Court Restricts Car Dealer’s Damages
Bankruptcy court finds car dealer’s claim for fair market value of its franchise based on state law dealer statute is invalid under Bankruptcy Code; expert testimony only supports past lost profit damages for cars and parts and accessories in stock at tim ...
In re: American Suzuki Motor Corporation
Bankruptcy court finds car dealer’s claim for fair market value of its franchise based on state law dealer statute is invalid under Bankruptcy Code; expert testimony only supports past lost profit damages for cars and parts and accessories in stock at tim ...
Problems in Valuing Auto Dealerships During the Downturn
Appellate court holds that valuation date must bear a “rational relationship” to the assets being valued, and confirms no value for the auto dealership in this case, based on standard appraisal practice to round negative values to zero.
Expert Uses Only One Comp to Calculate Auto Dealership Damages
Appellate court affirms $370,000 in lost profits for proposed Chrysler dealership, based in part on actual sales data from a single benchmark run by the same dealer but selling vehicles from a competing manufacturer.
DaimlerChrysler Motors Company v. Manuel
Appellate court affirms $370,000 in lost profits for proposed Chrysler dealership, based in part on actual sales data from a single benchmark run by the same dealer but selling vehicles from a competing manufacturer.
Spady v. Spady
Appellate court holds that valuation date must bear a “rational relationship” to the assets being valued, and confirms no value for the auto dealership in this case, based on standard appraisal practice to round negative values to zero.
Yelverton v. Yelverton
Mississippi Supreme Court confirms exclusion of goodwill from valuation of car dealership.
Assumption Underlying Lost Profits Analysis Challenged as 'Net Opinion'
The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...
Fairway Dodge, Inc. v. Decker Dodge, Inc.
The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...
Nucar Consulting, Inc. v. Timothy Doyle, et al.
The Delaware Court of Chancery determined the quantum of damages in this misappropriation of a trade secrets case using an unjust enrichment theory. It limited the recovery to the profits earned over a two-year period because the evidence showed that it w ...