Manipulation of Valuation of Bequeathed Stock Sinks Charitable Contribution Claim
Tax Court says executor of estate in series of post-death measures changed the value and size of decedent’s stock donation and may not claim date-of-death value of assets not actually transferred to family foundation; court affirms estate tax deficiency.
Demand for Executive Compensation Data Lacks ‘Proper Purpose’
Appeals court finds no error in trial court’s rejection of plaintiff’s demand for inspection of corporate records on executive compensation, where expert testimony showed information was not necessary to value plaintiff’s minority interest in company.
Estate of Dieringer v. Commissioner
Tax Court says executor of estate in series of post-death measures changed the value and size of decedent’s stock donation and may not claim date-of-death value of assets not actually transferred to family foundation; court affirms estate tax deficiency.
Pearson v. Westervelt Co.
Appeals court finds no error in trial court’s rejection of plaintiff’s demand for inspection of corporate records on executive compensation, where expert testimony showed information was not necessary to value plaintiff’s minority interest in company.
Whether to mark up assets; Whether to tax affect gains
My question is in relation to a divorce case in which the main marital asset is an operating retail business. The business is organized as an S corporation and it possesses appreciated real ...
Reflecting dilution from warrants
When valuing a controlling interest in a company which has unexercised stock warrants (the warrants are held by other shareholders) at the date of death, how should I factor the warrants int ...
How to treat non-operating assets
Treatment of Non-operating Assets With a focus on Excess Working Capital , Kenneth W. Patton, Business Appraisal Practice , Winter 2000-2001, pp.41-47. This article focuses on identifying non ...
Fair market value, the willing buyer, and lessons from the Ninth Circuit
Last issue we discussed the characteristics of the willing buyer. This is a follow-up to that article. Who makes up the pool of potential willing buyers? That concept as it relates to a minority in ...
ASA International Appraisers Conference Presentation Summaries
n Discount Settlements on Recent Family Limited Partnership Cases Curtis Kimball, ASA, CFA Willamette Management Associates Curtis Kimball discussed the increasingly popular medium for e ...
The oxymoron of "control, marketable"
When we use the terms "marketable" or "nonmarketable" in business appraisal, we typically are referring to minority interests. Yet, some people apply the expression "marketable" or "nonmarketable" to controlling interests, where the distinction seems meaningless.
Marketability discount appropriate where no ready market exists
The issue in this marriage dissolution case is whether a marketability discount should be applied in determining the valuation of the common stock of the family business.
Marketability discount appropriate for 100% interest valuation
The issue in this marriage dissolution case is whether a marketability discount should be applied in determining the value of the common stock of the family business. Husband owned all of ...
Ferguson v. Ferguson
At issue is the marketability discount applied to the valuation of the husband's interest in a manufacturing business.
Adjusting usually inappropriate when valuing a minority interest
I have read both in your books and in the Reader/Editor Exchange of your newsletter how certain adjustments, or lack thereof, consider a closely-held companys earning capacity in light of t ...
Court Rules There Was No Abuse of Discretion in Valuing Controlling Interest of Stock
Husband appeals the trial court's valuation of his controlling interest in two closely-held companies, alleging the court failed to consider the binding restrictive sale agreements governing ...
Bailey v. Bailey
At issue is the valuation of husband's stock of several closely held corporations.
Control interest marketability discounts
In your text, " Valuing a Business ", third edition, you state that the time horizon is a factor that contributes to a marketability discount for controlling interests. You then go ...
Court finds that informed buyer would most likely value pharmacy using income approach
The primary valuation issues in this case involve two pharmacies, Cheshire Pharmacy, Inc., a retail pharmacy, and Cheshire Long Term Care Pharmacy, Inc., an institutional pharmacy, in which husband, a pharmacist, respectively owned a 100% and an 85% interest.
DeLucia v. DeLucia
At issue is the valuation of the marital property, including a pharmacy business.