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Letter to the Editor: Response to Article on Separating Active and Passive Appreciation in the Value of a Marital Asset

The author says there are flaws in Dr. Ashok Abbott’s approach to segregating passive from active increases in the value of a marital asset—and he presents an alternate approach.

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Recent press releases and news about Business Valuation Resources.

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 ...

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 ...

Metro Leasing and Development Corporation, East Bay Chevrolet Company v. CIR

The Tax Court considered whether the compensation paid by a holding company to its shareholder, a husband and wife, was reasonable and deductible under IRC Sec. 162.

Carter v. Carter

One issue in this case was the valuation of goodwill in a unincorporated used car dealership.

Using Jensen’s Alpha to Separate Active and Passive Appreciation

The author presents an alternate approach (Jensen’s alpha) to segregating passive from active increases in the value of a marital asset. An example is presented of an automobile dealer.

Fidelity Warranty Services, Inc. v. Firstate Insurance Holdings, Inc.

District court reverses $3.5 million award for lost business value due to expert’s use of incorrect measure of damages (income approach), and because owner’s attempt to cure by testifying as to market value was unfair surprise and speculative.

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 ...

In re the Marriage of Carol A. Harrington v. Dennis L. Harrington

The Washington Court of Appeals, Division I, affirmed the lower court's decision declining to apply a minority interest discount to the parties' minority interest in an auto dealership because the parties were in a position to get control of the corporati ...

Auto Dealerships, Used Cars

This industry comprises establishments primarily engaged in retailing used automobiles and light trucks, such as sport utility vehicles, and passenger and cargo vans.

In re the Marriage of Wolhaupter-Heinzel

One of the issues was whether the parties' gun shop business should be valued at liquidation value or book value of inventory since wife wanted to continue the business.

Kraatz v. Heritage Imports

Issue was damages where employment agreement entitled plaintiff to 15% of the value of Heritage's stock in excess of $2.5 million, in the event of wrongful termination.

Digital Library Publication List

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 Digital Library Publications - Guides BVR's Digital Library offers online access to all BVR-published books, guides and special reports. To learn more about this must-have resource, please visit bvresources.com/digitallibrary PUBLICATION TITLE AUTHOR(S) MORE INFO A Field Guide to Business Valuation BVR Learn More Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations, Second Edition BVR Learn More Borrowman Baker/BVR 2012 National BV Salary Survey Report BVR Learn More Building the Essential BV Templates in Excel BVR Learn More Business Valuation & Bankruptcy Case Law ...

Royal's Reconditioning Corporation, Inc. v. Garry Royal

The Illinois Court of Appeals reversed the lower court's award of lost profits in this breach of employment contract case.

Smith v. Smith

One issue was whether the trial court correctly valued the business using the excess earnings approach while determining the capitalization rate on its own.

Ullom v. Ullom

Issue is whether goodwill, found by the court to be an asset of a closely held corporation, can be excluded from marital property in equitably distributing shares of stock.

Guide Brochure 2018

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Download our complete catalog of guides, books, and special reports that BVR offers on the most important business valuation topics.

Belleville Toyota, Inc. v. Toyota Motor Sales, U.S.A., Inc.

The Illinois Supreme Court affirmed a damage award for violation of the Motor Vehicle Franchise Act.

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.

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 ...

Valuation in Times of High Inflation

Over the past year, inflation rates as measured by the U.S. Consumer Price Index have moderated but remain well above the Federal Reserve’s long-term target rate of 2%. The Federal Reserve continues to take measures to control the elevated levels of inflation by raising interest rates and tightening monetary policy. With elevated inflation levels and high interest rates, valuation analysts continue to be challenged with incorporating these macroeconomic trends into the valuation of closely held ...

All Guide Brochure

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Estate of Feldmar v. Commissioner

At issue is the date of death fair market value of 767,800 shares of United Equitable Corporation common stock owned by Milton Feldmar at his death.