Julie A Su v. Bensen
This case was one in a line of suits the Department of Labor brought against fiduciaries, including trustees and owners of businesses, in ESOP transactions challenging the value of the business the owners/defendants sold. Once again, the DOL won this case choosing the value their expert presented, which was substantially below the purchase price the ESOP paid for the business.
The U.S. District Court (Arizona) Accepts the Valuation of the DOL’s Expert in Finding the Defendants Breached Their Fiduciary Duties (ESOP)
This case was one in a line of suits the Department of Labor brought against fiduciaries, including trustees and owners of businesses, in ESOP transactions challenging the value of the business the owners/defendants sold. Once again, the DOL won this case choosing the value their expert presented, which was substantially below the purchase price the ESOP paid for the business.
BV News and Trends June 2024
A monthly roundup of key developments of interest to business valuation experts.
More from Hitchner’s BV Myth Busters
They’re up to Myth No. 12, which is, “to value a minority interest in a private business, you must first value it on a 100% control basis.”
BV News and Trends November 2023
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends November 2023
Business valuation news from a global perspective.
BVResearch Pro adds to its archive of the ASA’s BV Review
Among many other resources, the BVResearch Pro platform contains the full archive of the Business Valuation Review going back to 1982.
Understanding Control vs. Lack of Control and Applicable Discounts
Please join us for a refresher course on premiums and discounts related to control (or lack of it). Topics covered will include: when discounts for lack of control apply, elements of control, levels of control, what to look for in governing documents regarding the rights of non-controlling owners, developing a non-controlling value directly versus indirectly, control premiums and various sources for premiums and discounts for both operating companies and holding companies, such as Mergerstat, Partnership ...
Business Valuation Case Law Yearbook, 2023 Edition
January 2023 PDF, Softcover (195 pages)
BVR (editor)
Business Valuation Resources, LLC
Global BV News: Takeover premiums in Canada increased in the first half of 2022
The median takeover premium of Canadian public companies in the first half of 2022 was 40%, a 7% increase from the prior year, according to “Canadian M&A Insights” (Summer 2022) from Kroll.
Highlights From the 2022 NYSSCPA BVLS Conference
Money laundering, earnouts, valuing debt, and SPAC enforcement are a few of the topics presented at the Business Valuation and Litigation Services (BVLS) conference hosted by the New York State Society of CPAs. Here are some key takeaways.
Highlights from the NYSSCPA BV conference
BVWire attended the New York State Society of CPAs’ Business Valuation and Litigation Services Conference, and—as always—it was an excellent event.
Business Valuation Case Law Yearbook, 2022 Edition
January 2022 PDF, Softcover (177 pages)
BVR (editor)
Business Valuation Resources, LLC
The legal coverage and in-depth analysis from the BVR legal team deliver lessons learned to help appraisers reach better and more defensible valuation conclusions. All the cases featured in this book impart important lessons about applicable legal principles, approved and discredited valuation methodology, and the act (and art) of presenting expert opinions. This must-have collection benefits both the generalist as well as the specialist.
Learn more >>
Premium Gap Closes Between Strategic and Financial Acquisitions
The difference between the premium strategic buyers pay for acquisitions versus what financial buyers pay has decreased, according to recent data in the Factset MergerStat/BVR Control Premium Study.
BV News and Trends September 2021
A monthly roundup of key developments of interest to business valuation experts.
A Practical, Step-by-Step Process for Applying Invested Capital Premiums
For years, the valuation profession has debated the definition of a control premium, including its distinction from an acquisition premium. What began years ago as a relatively simple question—if there is a control premium, what should it be?—now includes analyzing such concepts as invested capital premiums and equity-based premiums, transaction synergies and strategic values, marketability, and levels of control. All are “key points” to keep in mind throughout the quantification of a control premium, say Tim Meinhart and Nate Novak (both of Willamette Management Associates), who led a webinar on this topic titled Evaluating and Applying Control Premiums earlier this year.
ESOP litigation has become ‘risky business,’ says Alerding
As BVWire recently reported, the latest development in the long-running Brundle ESOP litigation is a lawsuit the trustee has filed against the very ESOP appraiser it once had hired to work on the case.
How to Use New Data on Invested Capital Premiums
To estimate acquisition premiums the use of invested capital premiums is highly encouraged in certain situations. This article presents a case study and step-by-step guide to using these data that are now included in the Factset Mergerstat/BVR Control Premium Study.
Four questions you must always ask about PFI
There are many things to consider when evaluating prospective financial information (PFI), and much of it can be boiled down to four questions you should be asking, according to the just-released BVR Guide to Management Projections and Business Valuation: Analysis and Case Law.
Another wrinkle in the Brundle ESOP case
Although the district and appellate courts in the landmark Brundle ESOP case ruled years ago against the trustee, Wilmington Trust, litigation related to the case is not over.
Two new resources from BVR
Just released!
BVR Briefing - Control Premiums: A Deep Dive into the New Data on Invested Capital Premiums
June 2021 PDF
BVR (editor)
Business Valuation Resources, LLC
New evolving ESOP case raises familiar valuation-related issues
A new ESOP litigation is underway in federal district court related to a 2011 transaction in which the majority owner of the company sold his remaining stock to the company’s ESOP.
Evaluating and Applying Control Premiums
In recent years, a greater amount of scrutiny has been placed on valuation analysts’ selection and use of control premiums. As a result, there has been a renewed interest in distinguishing acquisition premiums from control premiums and equity premiums from invested capital premiums. Join Timothy Meinhart for a comprehensive discussion of the proper quantification and application of acquisition premiums and control premiums and also learn about the benefits of using market-based invested capital premiums rather ...
Scalia v. Reliance Trust Co.
In an evolving ESOP case, court says DOL’s allegations that ESOP trustee and various directors engaged in breaches of fiduciary duties and caused the ESOP to enter a prohibited transaction (i.e., overpaid for company stock) require “fact-intensive inquiry” and cannot be resolved on summary judgment.