Expert Survives Daubert—Allowed to Testify as to Lost Business Value
The case dealt with two motions to preclude testimony of an expert witness as to the loss in value of the plaintiff’s business. The plaintiff was an environmental consulting firm allegedly injured as a result of the actions of certain employees including breach of their fiduciary duty. The court concluded that the witness may testify because his report was based on sufficient facts and data and he applied reliable principles to the facts of this case.
White Buffalo Env’t, Inc. v. Hungry Horse, LLC
The case dealt with two motions to preclude testimony of an expert witness as to the loss in value of the plaintiff’s business. The plaintiff was an environmental consulting firm allegedly injured as a result of the actions of certain employees including breach of their fiduciary duty. The court concluded that the witness may testify because his report was based on sufficient facts and data and he applied reliable principles to the facts of this case.
Chancery Says Solid Sales Process Lends Credibility to Deal Price
In appraisal action, Chancery says final merger consideration best represents fair value, noting sales process led to “meaningful price discovery”; court says with DCF too much depends on assumptions; small changes may have outsize impact on value range.
Merion Capital L.P. v. Lender Processing Servs.
In appraisal action, Chancery says final merger consideration best represents fair value, noting sales process led to “meaningful price discovery”; court says with DCF too much depends on assumptions; small changes may have outsize impact on value range.
Chancery Says Solid Sales Process Lends Credibility to Deal Price
In appraisal action, Chancery says final merger consideration best represents fair value, noting sales process led to “meaningful price discovery”; court says with DCF too much depends on assumptions; small changes may have outsize impact on value range.
Chancery Validates Tax Affecting in Fair Value Case
In statutory appraisal, Chancery affirms need for tax affecting in calculating projected free cash flows for DCF model; “operative metric” under Kessler model is amount of funds available for distribution to shareholders, not actual distributions made.
Owen v. Cannon
In statutory appraisal, Chancery affirms need for tax affecting in calculating projected free cash flows for DCF model; “operative metric” under Kessler model is amount of funds available for distribution to shareholders, not actual distributions made.
Court Rejects Art Market Expert’s Profitability Analysis
Court says artist’s art making is business and IRS expert’s appreciation analysis is unreliable where the expert did not consider factors other than price of previously sold paintings; artist could reasonably expect to make profit despite prior losses.
Crile v. Commissioner
Court says artist’s art making is business and IRS expert’s appreciation analysis is unreliable where the expert did not consider factors other than price of previously sold paintings; artist could reasonably expect to make profit despite prior losses.
Book Value Accurately Reflects FMV of Departing Partner’s Interest
State appellate court validates trial court’s use of book value of LLC to compute FMV of withdrawing partner’s interest; it finds the income approach is inapplicable because there is no guarantee of future cash flow considering the withdrawing member prov ...
Fancher v. Prudhome
State appellate court validates trial court’s use of book value of LLC to compute FMV of withdrawing partner’s interest; it finds the income approach is inapplicable because there is no guarantee of future cash flow considering the withdrawing member prov ...
‘Intrinsic Value’ Doesn’t Meet Daubert Criteria
Opinions of music industry consultant and attorney not reliable enough to prove lost value of startup record company.
24/7 Records, Inc. v. Sony Music Entertainment, Inc.
Opinions of music industry consultant and attorney not reliable enough to prove lost value of startup record company.
In re Marriage of White
At issue is the valuation and divison of inherited property and husband's royalities from textbook publication.
In re Marriage of Hogan
One issue in this case was the valuation of an art studio and its goodwill.