In re Marriage of Johnson
Appeals court strikes divorce ruling adopting income-based valuation of enterprise value of owner’s financial services business, valuation conflicts with data from similar transaction that occurred close to valuation date and involved owner-spouse.
Court Declines to Attribute Commercial Goodwill to Solo Practice
Appeals court affirms trial court’s ruling finding that, without noncompete from owner-spouse, under FMV standard, financial advisor’s solo practice fetches only net book value of its tangible assets; most of value lies in owner-spouse’s personal goodwill ...
K.T. v. M.T.
Appeals court affirms trial court’s ruling finding that, without noncompete from owner-spouse, under FMV standard, financial advisor’s solo practice fetches only net book value of its tangible assets; most of value lies in owner-spouse’s personal goodwill ...
Callahan v. Callahan
Appellate court says trial court did not double dip where it predicated its alimony order on husband’s general earning capacity, independent of husband’s employment at companies that were marital assets subject to property division.
Court Rejects Double-Dip Claim, Emphasizing Owner’s General Earning Capacity
Appellate court says trial court did not double dip where it predicated its alimony order on husband’s general earning capacity, independent of husband’s employment at companies that were marital assets subject to property division.
Buyout Agreement Short-Circuits Court’s Scrutiny of Appraisals
Court says determination of repurchase price of departing partner’s stake is subject to operating agreement giving defendants absolute control over valuation; absent bad faith conduct, court declines to scrutinize appraisals underlying buyout offer.
Leone v. Owsley
Court says determination of repurchase price of departing partner’s stake is subject to operating agreement giving defendants absolute control over valuation; absent bad faith conduct, court declines to scrutinize appraisals underlying buyout offer.
Court Likens ‘Book of Business’ to Professional Goodwill
Appeals court says financial analyst spouse’s ability to induce clients to follow her when switching employer resembles goodwill in professional practices and represents a divisible community asset; trial court erred when it found analyst’s book of busine ...
Finby v. Finby
Appeals court says financial analyst spouse’s ability to induce clients to follow her when switching employer resembles goodwill in professional practices and represents a divisible community asset; trial court erred when it found analyst’s book of busine ...
Expert’s Event Study ‘Flouts’ Commonly Accepted Methodology
District court strike’s expert event study, purporting to support a “fraud on the market theory,” for “flouting” accepted methodology, including “cherry-picking” the event dates and failing to account for confounding factors.
Bricklayers and Trowel Trades International Pension Fund v. Credit Suisse First Boston
District court strike’s expert event study, purporting to support a “fraud on the market theory,” for “flouting” accepted methodology, including “cherry-picking” the event dates and failing to account for confounding factors.
Dawyot v. Catawba Capital Mgmt., Inc.
In buyout dispute, court sets aside third-party appraisal performed pursuant to redemption agreement; court says final appraisal report contains at least one “palpable error” related to normalization of earnings that had a significant effect on the valuation; appraiser did not testify at trial.
Adams v. Adams
Massachusetts Supreme Judicial Court rejects direct capitalization method for valuing hedge fund partnership interest, finding DCF method is more appropriate, plus tax-affecting.
Insolvency of Hedge Funds Turns on Book Value Versus ‘Fair Valuation’ of Debts
Insolvency of hedge funds turns on book value versus "fair valuation" of debts.
Lost Profits or Market Value? Best Approach to Measure Goodwill Impairment
Court decides whether lost profits or market value is the most accurate measure of damages in this goodwill impairment case.
Waller v. Pidgeon
Insolvency of hedge funds turns on book value versus "fair valuation" of debts.
Bessemer Trust Company, N.A., v. Francis S. Branin, Jr.
Court decides whether lost profits or market value is the most accurate measure of damages in this goodwill impairment case.
Jelke Overruled: 11th Circuit Approves 100% Discount for Imbedded Capital Gains
11th Circuit rejects Jelke and adopts dollar-for-dollar discount for contingent capital gains tax liability.
Estate of Jelke v. Commissioner (II)
Eleventh Circuit rejects Jelke and adopts dollar-for-dollar discount for contingent capital gains tax liability.
Saye v Old Hill Partners, Inc.
On June 18, 2003, Plaintiff, Jeffrey M. Saye (“Saye”), commenced this action, alleging that Defendant, Old Hill Partners, Inc. (“OHP”) violated certain agreements under which OHP was to repurchase Saye’s shares in OHP and grant an option for Saye to p ...
A Frustrated 7th Circuit Remands Tax Court’s Remands Tax Court’s Mark-to-Market Interest Swap Valuation
7th Circuit overturns Tax Court’s fair market valuation of interest swaps, saying it didn’t give due deference to Commissioner’s calculations.
JP Morgan Chase & Co. v. Commissioner of Internal Revenue
Seventh Circuit overturns Tax Court’s fair market valuation of interest swaps, saying it didn’t give due deference to Commissioner’s calculations.
Yet Again, Delaware Looks to DCF in Appraisal Action
PNC Financial Services Group Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding’s subsidiary, PFPC Worldwide Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.
Disparity Between Valuations of Hedge Funds of Unlisted Securities Not Misleading by Itself; Self-Dealing Needed for Fraud
Beacon Hill Asset Management LLC (Beacon Hill), an investment manager of hedge funds that invested in mortgage-backed and related securities, allegedly overstated the net asset values (NAV) of three funds from March 2000 through September 2002 by as much as 61.22%.
Andaloro v. PFPC Worldwide, Inc.
PNC Financial Services Group, Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding's subsidiary, PFPC Worldwide, Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.