New updates to financial analysis decisions at BVLaw
Here are a sampling of cases where issues of business valuation factored in the final court decisions. As always, BVLaw Alert’s digests, and original court documents, are available for these and other breaking decisions.
Business Valuation Cases in Brief
A review of cases that present issues of interest within the business valuation community.
Analysts Not Required to Predict the Future—Only to Probe Present Facts
In assessing fair value and adequate consideration of ESOP transaction, court considers whether appraiser should have reasonable foreseen future events affecting stock and company value.
11th Circuit Disregards Changeable Buy-Sell Agreement, but Insurance Proceeds Used for Buyout Not Included in Value
As reported in the August 2004 issue of Business Valuation Update, the issue in this estate tax case was the value of George Blount’s (decedent’s) interest in a closely held company on the date of his death.
Estate of Blount v. Commissioner (II)
The issue in this estate tax case was the value of George Blount’s (decedent’s) interest in a closely held company on the date of his death.
Keach v. U.S. Trust Co.
In assessing fair value and adequate consideration of ESOP transaction, Court considers whether appraiser should have reasonable foreseen future events effecting stock and company value.
Motion to Exclude Banker Using DCF Method Denied
Participants in CommutAir’s Employee Stock Ownership Plan brought this ESOP litigation alleging numerous claims of breach of fiduciary duty by the trustee and others involved in the ESOP.
ASA International Appraisal Conference: Winds of Change Part 2 of 2
The ASA International Appraisal Conference held at the Marriott Waterside Hotel & Marina on July 14-16 in Tampa, Florida was anything but business as usual this year.
Redemptions of ESOP Shares Were Deductible Dividends
The question of whether the distributions to plan participants are deductible dividends depends on who owned the convertible preferred stock when the redemptions took place.
Henry v. Champlain Enterprises, Inc. (I)
In this case, a purchase for the ESOP was valued incorrectly, the IRS determining that the valuation did not take into consideration the lack of marketability due to the remaining shares ...
Boise Cascade Corp. v. United States
Issue is whether distributions to ESOP plan participants are deductible dividends.
No Evidence That Board's Financial Advisor Was Fiduciary to ESOP
This was a motion for summary judgment in connection with an action for breach of fiduciary duty to the employee stock ownership plan (ESOP) of F&G company.
Gary Lee Eckelkamp, et al. v. Dennis J. Beste, et al.
The U.S. Court of Appeals for the Eighth Circuit determined that an expert report indicating a greater valuation for ESOP purposes and showing that the directors of the ESOP were overcompensated in and of itself does not create a genuine issue of material ...
ESOP Valuation Based on Purchase Price Desired by Selling Shareholder Fails to Support Reasonably Prudent Investigation
The issue in this case was whether the defendants breached their fiduciary duties to the USCC Employee Stock Ownership Plan (ESOP) participants.
Horn v. McQueen
The issue in this case was whether the defendants breached their fiduciary duties to the USCC Employee Stock Ownership Plan (ESOP) participants.
2001 ASA International Appraisal Conference, part 2 of 2
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Penn., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that th ...
What's new online at BVLibrary.com
BVLibrary is a website designed with the business valuation professional in mind. It offers instant access to the latest business valuation research ...
Succession Planning for the Owners of the Closely-held Business
Mark B. Edwards ALI-ABA Course of Study Materials: Estate Planning for the Family Business Owner , March 2001, Volume I This practical guide to intergenerational wealth transfers of closely h ...
ESOPs Often Overlooked as a Planning Tool for Corporations and Shareholders
Kober, John A. Insights , Spring 2001 An ESOP is a plan under which the employees of a company can acquire the stock of that company. This type of contribution plan is distinguished from other ...
Recent Court Ruling Regarding Excess Compensation Paid to Officer and Trustee of ESOP Company: The Need for Fairness Opinions
Ackerman, David Insights , Spring 2001 This article discusses the case of Delta Star, Inc. v. Patton , 76 F.Supp.2d 617, 1999 U.S. Dist. LEXIS 10543 (W.D. Penn. 1999), as it illustrates the ...
HOWARD V. SHAY REDUX, Rabe, James G., CFA, ASA, and David Ackerman, Esq.Willamette Management Associates Insights, Spring 1999.
The Pacific Architects and Engineers (PA&E) ESOP, created in 1972, had no put option, as required in ESOPs established since 1986. The company's earnings were marginal, and the stock had never pai ...