Sternat v. Sternat
Appeals court says trial court’s decision to admit opinion of seasoned CPA expert who was not a credentialed business valuator was not error because valuation was a “non-issue” where evidence showed the indebted company was no longer a going concern.
Treatment of Debt Skews Valuation of Franchise Business
Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.
Freihage v. Freihage
Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.
Court Deems Treatment of S Corp Undistributed Income ‘Problematic’
Court rejects expert’s “excess working capital” analysis to determine income for child support purposes saying it conflicts with state statute’s requirement to rely on historical practices when assessing legitimacy of undistributed earnings of an S corp.
Regulatory Issue Causes Bankruptcy Valuation to Falter
Court praises debtors’ expert valuation of wireless venture’s spectrum but says the determination improperly assumes FCC license approval where the agency’s decision is uncertain; lacking reliable asset value, court rejects reorganization plan.
In re Rural Metro Corp. Stockholders Litigation
Financial advisor aided and abetted directors’ breach of fiduciary duty by causing ill-timed, below-fair-value sale of the company based on manipulated valuation analysis, including false and material information related to precedent transaction analyses.
Intrinsic Value Review Precludes Inclusion of Fractional Discounts
The appellate court finds that, performing the requisite intrinsic value review, the circuit court properly declined to include in its analysis any discounts the husband’s expert proposed to account for his fractional interest in companies owning hotels ...
Patel v. Patel
The appellate court finds that, performing the requisite intrinsic value review, the circuit court properly declined to include in its analysis any discounts the husband’s expert proposed to account for his fractional interest in companies owning hotels ...
FMV introduces detailed Restricted Stock Study
Discounts for lack of marketability are frequently the largest money issue in disputed valuation cases. The FMV study has researched the most data points for each transaction and thus can deliver the ...
Debt to Owner Excluded If Selling Business
Bank One Milwaukee appealed the judgment of the Circuit Court for Milwaukee County to award damages and costs to Williams Bay Trading Co. on breach of contract and bad-faith claims.
Bank One Milwaukee v. Williams Bay Trading Co.
Bank One Milwaukee appealed the judgment of the Circuit Court for Milwaukee County to award damages and costs to Williams Bay Trading Co. on breach of contract and bad-faith claims.
Owner's Debt Not Included in Net Asset Value
Plaintiff, Bank One Milwaukee, appealed the judgment of the Circuit Court for Milwaukee County to award defendants, the clothing import company of Williams Bay Trading and owner, damages, and costs on breach of contract and bad-faith claims that arose out of an action to seize assets.
Liquidated Business Valued as Going Concern
The Wisconsin Court of Appeals concluded that the shareholder loans should be removed when determining the value of stock in a closely held corporation where one person owns all the stock.
Financial Statement analysis and Business Valuation for the Practical Lawyer
n FINANCIAL STATEMENT ANALYSIS AND BUSINESS VALUATION FOR THE PRACTICAL LAWYER , Dickie, Robert B. American Bar Association, Section of Business Law , P.O. Box 10892, Chicago, Ill. 60610-0892 ...
DLOM applies to equity only
When valuing a subject on a fully invested basis under the income approach and applying a WACC model using bank borrowing rates for the debt component, do discounts for lack of marketabilit ...
Debt and Equity Weightings in WACC
Evans introduces the formula below to simplify the iteration process when employing the single period capitalization method. The formula solves for the fair market value of equity based on independent factors that are generally known in advance by the valuation professional.
Hintmann v. Weber (II)
At issue is the valuation of petitioner's ESOP-held shares.
Special Master Appointed to Resolve Calculations
This is a follow-up to the Chancery Court's opinion dated Feb. 17, 1998, on petitioners' Petition for Appraisal of ESOP-held shares.
Partnership discounts from NAV lower in 1997
Courts and other reviewers of business appraisals are becoming increasingly demanding about getting specific market-comparable data, as opposed to just generalities or broad averages. To this end, t ...