Appeals court vacates going-concern valuation for firm being wound down
In an Arizona divorce case, the couple owned a business that was being phased out.
Trial Court’s Decision of Value of Business Based on a Going Concern Is Reversed and Remanded
The appeal in this case dealt with, among other issues, the trial court’s decision to adopt the husband’s expert’s value that was based on a capitalization of earnings based on expected future income. The appellate court noted that the evidence from the trial showed that the business received no revenue after the wife sold her interest to a third party, and there was no evidence that similar earnings would occur in the future. The trial court’s determination of value was vacated and remanded.
In Re Riddle
The appeal in this case dealt with, among other issues, the trial court’s decision to adopt the husband’s expert’s value that was based on a capitalization of earnings based on expected future income. The appellate court noted that the evidence from the trial showed that the business received no revenue after the wife sold her interest to a third party, and there was no evidence that similar earnings would occur in the future. The trial court’s determination of value was vacated and remanded.
Court Denies Motion to Exclude Rebuttal Testimony of Damages
This case concerned the purchase of a historic steam plant in downtown St. Louis. The claims included breach of contract, fraudulent conveyance, and tortious interference, among others. This particular case dealt with a motion in limine to exclude rebuttal testimony from the expert for the counterclaim defendants regarding damages put forth by the counterclaim plaintiffs. The court denied the motion.
SL EC, LLC v. Ashley Energy, LLC
This case concerned the purchase of a historic steam plant in downtown St. Louis. The claims included breach of contract, fraudulent conveyance, and tortious interference, among others. This particular case dealt with a motion in limine to exclude rebuttal testimony from the expert for the counterclaim defendants regarding damages put forth by the counterclaim plaintiffs. The court denied the motion.
Valuing Small and Micro Businesses Using the Income Method
Focus in on valuing micro and small businesses using the income methods of business valuation. Learn to distinguish differing risk factors between large companies and micro and very small companies. Join Gregory Caruso for a deep dive into problematic areas of actual small-business valuation cases to review theory and tie it into the actual application of methods using best practices and professional judgment. Audience questions and succinct opinions welcomed in this hands-on event.
Restaurant Valuation: Serving Your Clients During the Covid-19 Crisis
Few industries have been as harshly impacted by COVID-19 as the restaurant industry. Join Lynton Kotzin for an overview of the state of the restaurant industry and what the future looks like for different restaurant types. Learn the reasonableness test, value drivers, and proper application of the approaches during these volatile times. Be ready to advise and value your restaurant clients.
In re Happy Child World, Inc.
In an entire-fairness-cum-statutory-appraisal case involving nonoperating day care center whose facility was leased on merger date, court approves use of capitalization of earnings and NAV models and averaging results to determine fair value; business model was uncertain on merger date, court notes.
Uncertain Business Model on Merger Date Justifies Use of Income and NAV Models, Court Says
In an entire-fairness-cum-statutory-appraisal case involving nonoperating day care center whose facility was leased on merger date, court approves use of capitalization of earnings and NAV models and averaging results to determine fair value; business model was uncertain on merger date, court notes.
‘Overstated’ projections sink plaintiff’s fair value determination
Earlier this year, a New York trial court presiding over a buyout dispute featuring an online wholesaler of faucets, sinks, and fixtures rebuffed the departing shareholder’s valuation.
Biton v. Kreinis
In dispute over fair value of plaintiff’s shares, court agrees with parties’ experts on use of capitalization of earnings method to value company; court rejects defense expert’s use of QuickBooks data and post-valuation-date revenue as representative annual revenue; applies key-person discount.
In Fair Value Determination, Court Says SSVS Discourages Use of Post-Valuation-Date Data
In dispute over fair value of plaintiff’s shares, court agrees with parties’ experts on use of capitalization of earnings method to value company; court rejects defense expert’s use of QuickBooks data and post-valuation-date revenue as representative annual revenue; applies key-person discount.
Washington appeals court issues key ruling on entity goodwill
In a “complicated” (court’s word) dissolution case, the Washington Court of Appeals recently made an important ruling on whether a professional limited liability company (PLLC) can have goodwill separate from the goodwill of the professionals.
McLelland v. Paxton
In dissolution dispute, appeals court affirms trial court’s finding, based on plaintiff expert testimony, that dissolved professional LLC had entity goodwill at trial based, in large part, on ownership of three leases and operation of offices that doctors could use upon termination of partnership.
Washington State Appeals Court Adopts Rule on Entity Goodwill in Professional LLC
In dissolution dispute, appeals court affirms trial court’s finding, based on plaintiff expert testimony, that dissolved professional LLC had entity goodwill at trial based, in large part, on ownership of three leases and operation of offices that doctors could use upon termination of partnership.
Post-trial briefs in Vinoskey ESOP trial point to fierce valuation fight
The DOL’s aggressive oversight strategy concerning ESOPs has led to a number of controversial lawsuits, including, most recently, the Acosta v. Vinoskey case, which, in the past few months, went to trial over the DOL's overpayment claim.
Starkly different valuation narratives in Vinoskey ESOP trial
Post-trial briefs in last year’s Acosta v. Vinoskey ESOP case reveal insights into how each side shaped the valuation narrative.
Appeals Court Validates Trial Court’s Reliance on Calculation of Value
Appeals court rejects claim that expert’s value determination pursuant to a calculation engagement rather than a valuation engagement was unreliable; trial court properly considered limitations inherent in a calculation engagement when crediting expert’s value estimate, appeals court says.
Rohling v. Rohling
Appeals court rejects claim that expert’s value determination pursuant to a calculation engagement rather than a valuation engagement was unreliable; trial court properly considered limitations inherent in a calculation engagement when crediting expert’s value estimate, appeals court says.
McNee v. McNee
Trial court did not err in classifying owner-spouse’s personal loan to his business during marriage as a marital asset, appeals court finds; loan could be seen as an increase in value of owner’s business or a debt owed to parties, appeals court says.
Different Theories Justify Classifying Loan to Business as Marital Asset
Trial court did not err in classifying owner-spouse’s personal loan to his business during marriage as a marital asset, appeals court finds; loan could be seen as an increase in value of owner’s business or a debt owed to parties, appeals court says.
NAV Alone Fails to Capture Distributional Interest’s Fair Value
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.
Expert’s Best-Effort Medical Practice Valuation Holds Up on Appeal
Appeals court upholds medical practice valuation despite gaps in expert analysis, including failure to analyze goodwill and exclude premarriage value portion of practice; expert’s job was “complicated” due to owner-spouse’s noncompliance with discovery.
Schewe v. Schewe Farms
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.
NAV Alone Fails to Capture Distributional Interest’s Fair Value
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.