Recent Cases from the Delaware Chancery: What Appraisers Need to Know Now
Join Bill Kennedy for a summary of key valuation issues ruled on by the Delaware Chancery and Delaware Supreme Court. Get coverage of recent cases and discover trends seen in the courts. Learn how the courts have treated the different valuation methods in recent cases, as well as factors to consider when applying the methods. No matter where you practice, the takeaways from this session will help valuation professionals deliver a quality, litigation-ready report.
BVR Briefing – Cybersecurity in Business Valuation: Addressing the Impact of Data Breaches on Value
March 2020 PDF (37 pages)
Business Valuation Resources, LLC
Emerging Issues in Cannabis and Hemp/CBD: Buckle Up as it is Just Getting Interesting!
Talk about a growing industry. As legalization spreads across the country, more valuation professionals are focusing on emerging and evolving issues in cannabis and hemp. If you are a practitioner or an advisor who is involved in the appraisal and analysis of business interests in both the legal, regulated cannabis sector and in agricultural hemp and cannabinoids, then don’t pass on this webinar. Recent developments in state and federal legislation will be covered as will ...
Valuation underpinning contested stock sale reflects fair value, Court of Chancery says
In a breach of fiduciary duty action arising out of a controversial stock sale, the Delaware Court of Chancery dismissed the plaintiff’s attacks on the underlying valuation, noting the appraiser was “exceptionally knowledgeable about the industry” and held “informed beliefs” as to the company’s specific structure.
Assessing Cybersecurity Risk When Doing a Business Valuation
Don’t fall into the trap of thinking that just large firms face material risks related to data security and privacy concerns. Here’s a checklist for the guidance of valuation professionals to help assess these risks when performing a business valuation.
Coster v. UIP Companies, Inc.
In breach of fiduciary duty action, court says stock sale passes enhanced fairness review; appraiser valuing real estate investment services company before sale is eminently qualified and knowledgeable about industry; capitalized cash flow method “generated a reliable indicator” of company’s value.
Valuation Underlying Controversial Stock Sale Satisfies Highest Scrutiny
In breach of fiduciary duty action, court says stock sale passes enhanced fairness review; appraiser valuing real estate investment services company before sale is eminently qualified and knowledgeable about industry; capitalized cash flow method “generated a reliable indicator” of company’s value.
Don’t Make Me Call Security!: How to Consider Data Security in a Business Appraisal
Cyber liability is of increasing concern for business owners and executives. With the average total cost of a single data breach of $8.19 million in the U.S., shareholder value can be wiped out with the click of a mouse. Cyber risk is a relatively new risk yet is a particularly lethal one. According to Inc. Magazine, 60% of successful cyberattacks force the target business to close. Appraisals that fail to explicitly address this risk are ...
Expert’s Failure to Explain Basis for Compensation Analysis Renders Testimony Inadmissible
In condemnation case requiring fair market value analysis to determine compensation due to landowners, court excludes defense expert testimony, citing failure to follow mandated methodology and standard of value; court calls aspects of loss calculation based on income approach “disturbing.”
Rover Pipeline LLC v. 10.55 Acres
In condemnation case requiring fair market value analysis to determine compensation due to landowners, court excludes defense expert testimony, citing failure to follow mandated methodology and standard of value; court calls aspects of loss calculation based on income approach “disturbing.”
Revenue mix is key to valuing HVAC companies
There is a big swing in prices for HVAC firms—from under 10% of revenue to over 100% of revenue—depending on the mix of business.
Bonding is a key valuation nuance for electrical contractors
The bonding process is very important for electrical contractors, especially in large metropolitan areas where they can’t work on certain jobs without being bonded.
ESOP trustee’s failure to vet valuation causes significant overpayment
Inadequate trustee performance was at the center of a recent case, featuring a nontraditional ESOP structure. The court found that, if the trustee had engaged with the underlying valuation, it would have discovered numerous weaknesses and prevented the ESOP from overpaying for the company stock.
Defense expert testimony supports ESOP valuation and fairness opinions
A recent ESOP decision involving allegations of breach of fiduciary duty and engaging in a prohibited transaction turned on whether the ESOP trustee’s financial advisor had performed proper due diligence and issued defensible fairness and valuation analyses.
Top Ten Issues to Note When Selecting COC Data in Volatile Times
Deriving a defensible cost of capital (COC) for the capital asset pricing method (CAPM), modified CAPM, or the build-up method is frequently the most contentious issue in litigation involving the valuation of private companies or economic damages. Moreove ...