Expand the following panels for additional search options.

Iowa Supreme Court Allows Reduction in Value for Transaction Costs but Refuses to Allow a Reduction for Built-In Capital Gains Tax

This case was decided, on appeal, under the Iowa “election-to-purchase-in-lieu-of-dissolution statute.” The Iowa Supreme Court decided that, because the parties’ experts had “both included transaction costs in their valuations under a net asset approach, the district court’s failure to reduce the asset values to account for the costs to liquidate the corporation’s assets warranted reversal.” Additionally, since there was no evidence of an intention to liquidate the company or its assets, the court declined to adjust for the built-in gains tax consequences urged by the majority shareholder.

Maginnis v. Maginnis

In this unpublished opinion, the Kentucky Appellate Court remanded the decision as to the value of the husband’s business for, among other things, the Family Court’s failure to consider an apportionment of goodwill between enterprise and personal goodwill. It also remanded for a reconsideration of the maintenance award to the wife since that award is based in part on the value of the business and the income of the husband.

Trial Court Fails to Consider Apportionment of Goodwill in a Marital Dissolution Case

In this unpublished opinion, the Kentucky Appellate Court remanded the decision as to the value of the husband’s business for, among other things, the Family Court’s failure to consider an apportionment of goodwill between enterprise and personal goodwill. It also remanded for a reconsideration of the maintenance award to the wife since that award is based in part on the value of the business and the income of the husband.

Guge v. Kassel Enters.

This case was decided, on appeal, under the Iowa “election-to-purchase-in-lieu-of-dissolution statute.” The court decided that, because the parties’ experts had “both included transaction costs in their valuations under a net asset approach, the district court’s failure to reduce the asset values to account for the costs to liquidate the corporation’s assets warranted reversal.” Additionally, since there was no evidence of an intention to liquidate the company or its assets, the court declined to adjust for the built-in gains tax consequences urged by the majority shareholder.

In Jackson case, Tax Court dismisses IRS expert’s revenue projections as ‘simply not reasonable’

When Michael Jackson died, his image and likeness was besmirched, and yet, once competent executors took charge, they were able to make a lot of money for the estate in the immediate post-death years.

A lot going on in fair value, per speakers at ASA conference

Some important developments in the area of fair value for financial reporting were covered at the 2021 ASA Fair Value Virtual Conference, held June 10.

Please take a survey about company-specific risk

BVWire is pleased to present a survey by The Appraisal Foundation’s Business Valuation Resources Panel’s Work Group on Company-Specific Risk Premia to understand how valuation practitioners address such premia within their valuations.

Updated research on MRP and risk-free rates used globally

The average required return on equity used for the U.S. is 7.3%, according to “Market Risk Premium and Risk-Free Rate Used for 88 Countries in 2021,” the latest research from Pablo Fernandez, Sofia Bañuls, and Pablo Fernandez Acin.

Financial reporting watchdogs ‘too lenient,’ say investors

The investor community is pressing the SEC to overhaul its financial reporting infrastructure as well as the PCAOB and FASB (overseen by the SEC), saying the watchdogs “are too lenient towards businesses and the accounting and auditing industry, especially the Big Four firms, that serves the businesses at the expense of investors who provide the capital,” according to an article in Accounting and Compliance Alert.

Age- and gender-specific risk? A new paper says it exists

We’d like to be a fly on the wall the first time a valuation expert testifies that his or her company-specific risk factor was adjusted for the age and gender of the subject firm’s top managers.

Two new resources from BVR

Just released!

What we’re eyeing at next week’s NACVA conference

The first of the national BV conferences—the National Association of Certified Valuators and Analysts (NACVA) 2021 Business Valuation and Financial Litigation Hybrid and Virtual Super Conference—is next week, June 21-25, in Park City, Utah.

Global BV News: IVSC issues second paper on ESG

Earlier this year, the International Valuation Standards Council (IVSC) issued a Perspective Paper of business valuations and environmental, social, and governance (ESG) factors (see our coverage here).

Global BV News: Today! Three-day CBV Congress begins with BV

The Chartered Business Valuators Institute (CBV Institute), Canada’s valuation professional organization (VPO), will present a very special Congress to mark the great milestone of reaching 50 years of service as a CBV profession.

BV movers . . .

Sonia Desai, CPA, ABV, ASA, CBV, has been named a partner at Houston-based Weaver.

CPE events

Federal Tax Litigation, Expert Witnesses, and the IRS. June 29, 10:00 a.m.-11:40 a.m. PT/1:00 p.m.-2:40 p.m. ET. Featuring: Michael Gregory (Michael Gregory Consulting). CPE Credits: 2.0.

Dipak Patel v. Siddhi Hospitality, LLC

This case dealt with compensation for a partner’s 25% interest in a business after he was expelled from the business. The appellate court remanded the case to the trial court for a recalculation of the compensation without the inclusion of discounts for lack of control and lack of marketability. The trial court allowed those discounts on the theory that the expelled partner was to receive the fair market value of his 25% interest in the entity. The appellate court determined that the operating agreement required him to be compensated for 25% of the FMV of the assets of the LLC and not the FMV of his 25% in the LLC entity.

Oregon Appellate Court Disallows Discounts for Lack of Control and Lack of Marketability

This case dealt with compensation for a partner’s 25% interest in a business after he was expelled from the business. The appellate court remanded the case to the trial court for a recalculation of the compensation without the inclusion of discounts for lack of control and lack of marketability. The trial court allowed those discounts on the theory that the expelled partner was to receive the fair market value of his 25% interest in the entity. The appellate court determined that the operating agreement required him to be compensated for 25% of the FMV of the assets of the LLC and not the FMV of his 25% in the LLC entity.

It’s not your fault … after 6 April 2022

It’s a big step for dignity and a step away from “unnecessary mud-slinging.”

Do business valuers need to change their tax rate assumptions after the new G7 negotiations?

It’s noteworthy that the G7 came to a landmark international tax agreement earlier this month.

Though still unfamiliar to many clients, the income approach offers practical benefits, Morris and Strickland say

How helpful are discounted cash flow and cost of capital analyses when you’re analysing a small, unlisted enterprise?

The government extends EMI stock option scheme protections

Enterprise management incentive (EMI) schemes have become popular since the government introduced them as a simplified way for small businesses to offer stock options to key staff.

Republished CEO gender study demonstrates the limitations of finance theory when applied to business valuation

A revised finance theory study, “Age, Gender, and Risk-Taking: Evidence From the S&P 1500 Executives and Market-Based Measures of Firm Risk,” reappeared in the new issue of the Journal of Business Finance and Accounting last month.

226 - 250 of 24,135 results (limit 10,000)