Detailed_Report_For_An_Estate
Sample Reports
51 PERCENT INTEREST IN RONALD K. MORRISON AND ASSOCIATES, INC. VALUATION REPORT NOVEMBER 13, 2020 © TRUGMAN VALUATION ASSOCIATES, INC. 2021 April 19, 2021 Crenshaw Hayes LLP 77 Brightline Avenue Randolph, NJ 07111 Attn: Anthony Y. Young, Esq. Re: Valuation of 51 percent interest in Ronald K. Morrison and Associates, Inc. Dear Mr. Young: We have performed a valuation engagement, as that term is defined in the Statement on Standards for Valuation Services (SSVS) of the American Institute of Certified Public Accountants of Ronald K. Morrison and Associates, Inc.
Congel v Malfitano (I)
New York appellate court says trial court erred when it declined to apply minority discount in determining “value” of minority shareholder’s interest in partnership where shareholder wrongfully dissolved partnership and buyout was not a fair value proceed ...
In re Boston Generating
Court authorizes $1.1 billion asset sale of the debtors, despite DCF by lenders’ expert that shows $13.8 billion value.
The Market Approach Today: Deciphering Messages From Markets, Courts, and Common Appraisal Errors
You would be forgiven for viewing this as the age of the income approach. While increased scrutiny through scholarship and judicial decision has raised the income approach to new prominence, a turbulent economy and tempestuous public markets have caused some appraisers to shy away from the market approach. But keep in mind: No valuation is complete without thorough analysis, and market evidence appears throughout the valuation process. In The Market Approach Today: Deciphering Messages From Markets ...
Estate of Cecil v. Comm’r
This was a gift tax valuation case the U.S. Tax Court decided. Gifts of minority interests in The Biltmore Co. were made from the its shareholders, the Cecils, to their children and grandchildren. The IRS audited the gift tax returns and assessed deficiencies for reporting too low fair market values of the gifts of The Biltmore Co. stock. Both sides presented experts to value the gifted interests. The experts agreed that the cash flows should be tax affected. The court accepted the tax affecting while allowing that it was not an admission by the Tax Court that tax affecting should apply in all cases. The Tax Court made changes to the values presented and cobbled together a final value that resulted in refunds to the taxpayers/petitioners.
Hubbard v. BankAtlantic Bancorp, Inc.
11th Circuit confirms reversal of securities fraud violation by Florida-based bank, based on failure by the plaintiff’s financial expert to apportion the amount of stock losses between the alleged fraud and other market and industry risks, particularly th ...
Reis v. Hazelett Strip-Casting Corp.
DE Chancery Court makes substantial normalizing adjustments to capitalization of earnings values from “dueling” experts to determine fair value for fractional interests created by company’s reverse stock split.
Graves v. Tomlinson
Husband presents two experts to value wife’s three health care businesses, a forensic accountant to normalize the records and a business valuation expert to assess value under all three approaches.
Wycoff v. Commissioner
In a suit over fees paid by taxpayers’ operating companies to taxpayer-controlled management company, Tax Court says IRS expert’s cost markup analysis produces most credible arm’s-length management fee; this fee represents the allowable deduction amount.
Stowe v. Stowe
In divorce case, appeals court overturns trial court’s valuation for an independent insurance agency; the trial court, without analysis, accepted there was goodwill and adopted expert’s calculation of goodwill using multiple “derived from a non-analogous source applying un-adjusted factors.”
Oracle USA, Inc. v. SAP AG
Federal district court reverses record-setting $1.3 billion in copyright damages based on the lack of proof of any comparable, real world licenses, permitting the plaintiff to opt for a remitter of $272 million based on the defendant’s profits from a spec ...
In re Premier Entertainment Biloxi LLC
Bankruptcy court rejects “equitable solvency test” for gaming resort debtors, finding that adjusted balance sheet test, as supported by expert evidence, was the preferred test.
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.
Graspa Consulting v. United Nat’l Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court dismisses plaintiff’s (a restaurant chain owner/operator) claims against insurance company; plaintiffs did not incur (nor did it assert) physical damages to premises as required by the terms of the insurance policy.
In re El Paso Pipeline Partners, L.P. Derivative Litig.
Chancery says “dropdown” of assets from parent to master limited partnership resulted in overpayment; transaction was enabled by financial advisor that took orders from parent regardless of whether opinion “made sense as a matter of valuation theory.”
Introducing the 2012 Duff & Phelps Risk Premium Report & Calculator
Introducing the 2012 Duff & Phelps Risk Premium Report & Calculator A BVR Webinar Webinar Handbook March 13, 2012 Presenter: James Harrington Please note: This Handbook does not qualify for self study CPE credits. Copyright © 2012 Business Valuatio ...
Kipperman v. Onex Corp.
Court rejects expert’s unsupported use of three-year historical averages in his DCF to adjust the debtors’ management projections regarding revenue, debt-free cash flows, capital expenditures, and sales.
BVU News and Trends April 2019
A monthly roundup of key developments of interest to business valuation experts.
Acosta v. Vinoskey
In ESOP dispute, court partially excludes DOL expert’s damages analysis under Daubert; court finds expert’s market comparable approach to support overpayment claim is unreliable as is expert’s methodology for calculating alleged loss in stock value to existing shareholders.
The Persistence of Rules of Thumb
In this article I explore the reasons why, despite the supposed theoretical superiority of income methodologies, rules of thumb are often utilized to determine the equity value in Main Street exchanges. The examples of Main Street equity sales I cite are from the purchase and sale of small accounting practices in which I was party to the exchange. Based on an analysis of these exchanges, I conclude that the reason why rules of thumb were ...
Lightbox Ventures, LLC v. 3 RD Home Ltd.
Court excludes lost profits calculation and valuations of new venture; experts’ unquestioning adoption of plaintiff’s data and assumptions, the large range of valuations proffered, and disclaimers accompanying valuations undermine opinions’ meaningfulness.
Tutunikov v. Markov
In dissenting shareholder action, appellate court finds trial court had discretion to dismiss valuations from parties’ experts as “prejudiced” and draw on a third-party investor proposal for a “more realistic value” of the subject company; it also affirms ...
In re Greater Southeast Community Hospital Corp. (II)
Bankruptcy Court conducts extensive valuation findings of hospital in fraudulent transfer case.
In re Marriage of Hashemian
California approves excess earnings and “formula” approach to valuing atypical life insurance firm, based on industry compensation and revenue data.
AmBase Corp. v. United States
Federal Court of Claims accepts market value approach to valuing failed thrift in Winstar case, and rejects Gordon Growth model for failing to account for bank’s unstable earnings and its alternative investment opportunities in a “non-breach” world.