Unreasonable Assumptions in Discounted Cash Flow Analysis Result in Testimony Stricken Under Daubert
The U.S. Court of Appeals for the Eighth Circuit affirmed the lower court’s decision to award a new trial on damages in this breach of contract and misappropriation of trade secrets case. Both parties were involved in the radio broadcasting business.
DCF valuation should be improved
The discounted cash flow (DCF) technique is a staple of financial management textbooks, one might even say an idol not to be questioned. Our purpose is to show that the conventional way of computing D ...
Not so different after all
"reconciling the Single Period Capitalization Method with the Discounted Future Earnings Method," Kevin B. Reynolds , Business Appraisal Practice , Spring 2000, pp. 16-27. Under the income approach ...
Record attendance and strong presentations at AICPA BV conference
n PAINTING A MASTERPIECE – THE CREATION OF AN EFFECTIVE VALUATION REPORT Kevin Yeanoplos, CPA/ABV Beacon Valuation Group, Inc. Dressed appropriately ( see accompanying ...
Estate of Stevens v. Commissioner
In valuing 50% undivided interest in three commercial real properties, Tax Court rejects limiting discounts to costs of partitioning, finding 25% discount is appropriate for all properties and is in line with factor analysis for fractional interests.
Fair value: a view from the Delaware Court of Chancery bench
Vice Chancellor Jack B. Jacobs has served on the Delaware Chancery Court bench for 14 years. He has written many widely quoted opinions on fair value in statutory appraisals and breach of fiduciary du ...
Bizcomps "99 National Industrial Study analyzes over 500 small business sales
Bizcomps '99 National Industrial Study , Sanders, Jack R., P.O. Box 711777, San Diego, CA 92171, (619) 457-0366, $105.00, 129 pp., 8 ½" by 11", spiral notebook. This study was developed to give mo ...
1999 Guide to Business Valuations has "fair value" chapter, much more
The new 1999 Guide to Business Valuations contains more new material than any edition in several years.
On earning power & creative methodology
[T]he phrase 'earning power' must imply a fairly confident expectation of certain future results. It is not sufficient to know what the past earnings have averaged, or even that they disclose a defin ...
IBA Conference
n The court appointed expert Darrell V. Arne, CBA, ASA, CPA, CBI Arne & Co. Albuquerque, NM Darrell emphasized that there is a demand for court-appointed experts, courts and litig ...
"Business Transition: How to Value Your Financial Planning Practice"
Pollock, Stanley L ., " Business Transition: How to Value Your Financial Planning Practice " Journal of Financial Planning , June 1998, pp. 64-71. When working with clients, financial planners de ...
Drawing a clear distinction between income and market approaches and methodology
The point of this column is to advocate that income approach methods be distinguished clearly from market approach valuation methods. The valuation profession has (somewhat arbitrarily) classified ...
Court Cites Factors in Revenue Ruling 59-60 to Determine 'Fair Value'; Minority and Marketability Discounts Left to Trial Court's Discretion
The issue in this case is the "fair value" to be assigned to the dissenting shareholders' common stock in Weigel, a company engaged in the business of commercial television broadcasting.
Physician goodwill varies by practice - part II
In the September issue of BVU, Kumura expressed a concern that the present value of the future tax savings inuring to the benefit of the buyer overstates the value of goodwill. However, sinc ...
High rate present value tables
I subscribe to your newsletter and have all your books, but I am unable to find, in any of your publications, present value tables that exceed 30% (to be used in DCF valuation method). I wo ...
Delaware Chancery Court Endorses DCF Model; Forecast Assumptions Must Be Likely Scenarios
In a dissent to a typical statutory merger of a company called Vitalink, dissenters owning 201,900 shares claim a fair value of $13.32 per share versus respondent's $8.50 per share.
Diminishing physicians' goodwill
When valuing professional practices such as physician practices, the discounted cash flow (DCF) approach on an after-tax basis, is the methodology of choice. There have been slight differenc ...
New studies quantifying size premiums offer strong cost of capital support
Roger Grabowski is a partner and national director of Price Waterhouse LLP Valuation Services Group. David King is a manager with Price Waterhouse LLP in their Chicago office. This repor ...
Grimes v. Vitalink Communications
At issue is the fair value of petitioners' Vitalink shares based on corporation's future cash flows.
Court Rejects Discounted Cash Flow Model in Highly Leveraged Company
At issue is the fair market value of Soft Warehouse Inc. (SWI) stock a key employee purchased on June 30, 1989.
Morton v. Commissioner
At issue is fair market value of the capital stock of Soft Warehouse, Inc.
More Cases ... Shareholder Dispute: Weigel Broadcasting
This case was reopened on the dissenter's opinion that the trial court discounted the value of their shares due to their illiquidity and minority, thereby equating fair value with market value and erring as a matter of law.
Weigel Broadcasting v. Smith
At issue is the meaning of the words "fair value" in the Business Corporation Act.
IRS Contends License Payments 'a sham'
The ultimate issue in this case is whether taxable gifts or constructive dividend income were received by the son of the controlling shareholder of Home Shopping Network (HSN), through Pione ...