2001 ASA International Appraisal Conference, part 1
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Pa., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that this ...
www.BVMarketData.com sm expands
By Doug Twitchell * In addition to the newsletter you are now reading, Business Valuation Resources, LLC , also brings you several other business valuation-oriented products at www.BVMarket Dat ...
Lower return for control?
This is in response to the article on the first page of the March 2001 BV Update. I prefer to follow a different line of reasoning in thinking about the control premium idea, partly based ...
Simplot Reversed by 9th Circuit; Control Premium for Voting Shares Incorrectly Applied
This case is the 9th Circuit Court of Appeals' decision on appeal of Estate of Simplot v. Commissioner, 112 T.C. No.13 (1999), which was abstracted in the May 1999 issue of Shannon Pratt's Business Valuation Update.
Estate of Simplot v. Commissioner (II)
Ninth Circuit reversed and ordered entry of judgment in favor of the estate on remand because the Tax Court erroneously attributed a premium to minority voting stock.
The IRS' 'More Reliable' Valuation Accepted Over Estate Valuation
This case involves a hearing on remand from the 9th Circuit to provide sufficient analysis of the consideration value of common and preferred stock in two closely held companies transferred and received by Cyril Magnin, the life estate holder.
Discount rates based on CAPM don't always lead to minority value
The following quote from the fourth edition of Valuing a Business , contained at page 161 in the chapter titled "The Income Approach: Discounted Future Income Method," apparently has been misconstrue ...
Emerging Valuation Trends in Delaware
n EMERGING VALUATION TRENDS IN DELAWARE, Nolen, Samuel S., and Silberglied, Russell C. The Review of Securities & Commodities Regulation , Vol. 31, No. 14, August 1998. This article be ...
Liquidity Discount Inappropriate in Fair Value Case
The issue in this judicial appraisal action was the fair value of petitioners' 500,000 shares of WXL International Inc.
Borruso v. Communications Telesystems International
At issue is the fair value of the shares of common stock of WXL International, Inc. ("WXL"), a Delaware corporation, on the date on which WXL was merged with a with and into its parent corporation, Communications Telesystems International.
Court Concludes Fair Value Is 30 Times Price, Originally Offered Marketability Discount Inappropriate in Delaware Fair Value Case
The issue in this judicial appraisal action was the fair value of petitioners' 500,000 shares of WXL International Inc. (WXL).
Matthews critiques Mercers Simplot case review
Chris Mercer reviewed the Simplot case in the May 1999 issue of BVU , page 1. Gil Matthews, an IRS expert in the case, offers the following critique of Mercers review.–SP In his review ...
DCF Method Appropriate for Valuing General Contractor
In 1992, May Rakow gave 1,780 shares of Illinois Hydraulic Construction Co. (IHC) stock to her children and grandchildren.
Rakow v. Commissioner
At issue is the fair market value of stock given by petitioner to her children and grandchildren.
Court Accepts Expert's Value Based on 'Thoroughness and Credibility'
Trapp Family Lodge Inc. (TFL) gave notice of a special meeting of shareholders to vote on a proposed merger.
Control premiums? Maybe, maybe not'34% of 3rd Quarter buyouts at discounts
Valuation analysts who use the guideline public-company valuation method and then automatically tack on a percentage "control premium" based on Mergerstat Review control premium averages, had bett ...
In re 75,629 Shares of Common Stock of Trapp Family Lodge, Inc.
At issue is the admittance of expert testimony and the valuation of the corporation's stock.
Court Accepts Expert's Value Based on 'Thoroughness and Credibility': First Judicial Interpretation of Vermont Dissenters' Rights Statute
The issue in this judicial appraisal action was whether the trial court erred in adapting the valuation of $63.44 per share.
Tax Consequences, Shareholders’ Agreement and a Control Premium
The Vermont Supreme Court affirmed the lower court's valuation of dissenter's stock in a resort lodge.
Controlling Stockholders Have No Duty to Share Control Premium Received
NCC Industries is a publicly traded Delaware corporation involved in the garment business.
Herzog, Heine, Geduld, Inc. v. NCC Industries
Plaintiffs alleged breach of fiduciary duty based on majority shareholders sale of stock at a control premium price, where public sale price dropped significantly thereafter.
Consolidation IPO creates liquidity for new company
We brought you an example of a "consolidation IPO" in the medical field last year (see Spotlight Valuation, 5/96 p. 3), and here's one in the travel industry. The general idea is that a group of small ...
Court Rejects Hypothetical Control Premium Scenario
At issue is the value of Clyde Wright's 201,408 shares of common stock of the Wilber Corp., which owns 100% of the common stock of Wilber National Bank.
W. Clyde Wright v. Commissioner
At issue is the valuation of decendant's 201,408 shares of common stock of the Wilber Corp.
Court Takes Position on Trademark and Unpatented Technology Values
The issues in this case pertain to the acquisition of Carnation Co. by Nestle Holdings Inc.