Bayou Place Limited Partnership v. Alleppo’s Grill, Inc.
In rent payment dispute, court rejects defendant restaurant’s force majeure claim that devastating hurricane was act of God that interfered with restaurant’s use of property and excused performance where lease did not contain force majeure provision and rent payments stopped before storm.
In re Panera Bread Company
In appraisal action involving sale of public company, court says sale process had “objective indicia of reliability,” justifying use of deal price for fair value determination; synergy deduction is appropriate to account for value from anticipated cost and tax-related savings due to merger.
Court Considers Deal Price Persuasive Indicator of Fair Value and Approves Synergy Deduction
In appraisal action involving sale of public company, court says sale process had “objective indicia of reliability,” justifying use of deal price for fair value determination; synergy deduction is appropriate to account for value from anticipated cost and tax-related savings due to merger.
Persaud v. Goad
Court affirms divorce valuations for mixed real estate and business assets; even if trial court erred in stating negative value for business that generated no income but carried high annual costs, the error was harmless where court reframed decision as one of fairness rather than finances.
Mix of Real Estate and Business Assets Poses Valuation Challenges for Courts
Court affirms divorce valuations for mixed real estate and business assets; even if trial court erred in stating negative value for business that generated no income but carried high annual costs, the error was harmless where court reframed decision as one of fairness rather than finances.
Arizona Court Says Owner’s Goodwill in Restaurants Represents Community Asset
Appeals court affirms trial court’s decision to give wife portion of value of goodwill in two restaurants husband set up with new partner during separation, where restaurants carried husband’s name and featured recipes he had developed during the marriage; goodwill is a community asset.
Jimenez v. Jimenez
Appeals court affirms trial court’s decision to give wife portion of value of goodwill in two restaurants husband set up with new partner during separation, where restaurants carried husband’s name and featured recipes he had developed during the marriage; goodwill is a community asset.
Rebuttal Opinion Helpful to Jury Because Valuation ‘Not a Common-Sense Subject’
Court declines to exclude rebuttal damages testimony, noting rebuttal expert’s professional background and qualifications were similar to that of principal expert and rebuttal opinion was helpful to jury in assessing principal expert’s damages calculation.
Shareholder Agreement Sparks Suit Over Discount Use in FMV Calculation
Probate court says expert and other testimony aiding in interpretation of ambiguous shareholder agreement shows that fair market value determination of decedent’s minority interest allowed for use of discounts for lack of marketability and control.
Shareholder Agreement Sparks Suit Over Discount Use in FMV Calculation
Appeals court affirms probate court’s ruling that ambiguous shareholder agreement requiring determination of fair market value of decedent’s minority interest in closely held companies accommodated use of discounts for lack of marketability and control.
Spencer Franchise Servs. of Ga. v. WOW Café & Wingery Franchising Account, LLC
Court declines to exclude rebuttal damages testimony, noting rebuttal expert’s professional background and qualifications were similar to that of principal expert and rebuttal opinion was helpful to jury in assessing principal expert’s damages calculation ...
In re Estate of Bittner (Bittner II)
Appeals court affirms probate court’s ruling that ambiguous shareholder agreement requiring determination of fair market value of decedent’s minority interest in closely held companies accommodated use of discounts for lack of marketability and control.
Treatment of Debt Skews Valuation of Franchise Business
Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.
Lack of Marketability a Factor in Valuing Minority Interest
In buyout case, calculation of fair value of minority shareholder’s interest in restaurant turns on forensic accountant’s credit/cash ratio analysis; New York trial court says law recognizes lack of marketability as a factor in valuing closely held corpor ...
Cortes v. 3A N. Park Ave. Rest Corp.
In buyout case, calculation of fair value of minority shareholder’s interest in restaurant turns on forensic accountant’s credit/cash ratio analysis; New York trial court says law recognizes lack of marketability as a factor in valuing closely held corpor ...
Freihage v. Freihage
Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.
In re Estate of Bittner (Bittner I)
Probate court says expert and other testimony aiding in interpretation of ambiguous shareholder agreement shows that fair market value determination of decedent’s minority interest allowed for use of discounts for lack of marketability and control.
Valuation Confirms Salability of ‘Unique’ Restaurant’s Goodwill
State high court rejects per se extension of personal goodwill concept to nonprofessional businesses and finds in case at issue restaurant’s valuation indicates goodwill is marketable and thus corporate and subject to marital distribution.
Brave v. Brave (II)
State high court rejects per se extension of personal goodwill concept to nonprofessional businesses and finds in case at issue restaurant’s valuation indicates goodwill is marketable and thus corporate and subject to marital distribution.
Can a Restaurant Have Personal Goodwill?
State appellate court finds “professional license goodwill” exception, which treats personal goodwill as professional spouse’s separate property, applies to “unique,” successful restaurant and directs trial court to determine how much of the business’s go ...
With Expert Help, N.Y. Court Computes Deli’s Fair Value
New York court enlists expert valuators to determine the fair value of a deli, occupying a “unique niche,” following the death of one of two equal owners; the court adopts the defendant expert’s income approach, but rejects the proposed 20% lack of market ...
Brave v. Brave (I)
State appellate court finds “professional license goodwill” exception, which treats personal goodwill as professional spouse’s separate property, applies to “unique,” successful restaurant and directs trial court to determine how much of the business’s go ...
Ruggiero v. Ruggiero
New York court enlists expert valuators to determine the fair value of a deli, occupying a “unique niche,” following the death of one of two equal owners; the court adopts the defendant expert’s income approach, but rejects the proposed 20% lack of market ...
Actual Transaction Is ‘Gold Standard’ of Valuation, 7th Circuit Says
7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.
Reasonable Compensation Is Focus of Restaurant Value in Shareholder Litigation
Unanimous agreement among three appraisers persuades court to adopt their fair market value for a new restaurant, including deductions for reasonable compensation and rejection of DCF approach.