High Company-Specific Risk Adjustment Distorts Valuation
In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.
Advanced Drainage Sys. v. Quality Culvert, Inc.
In Daubert case, court accepts before and after method for lost profits and diminution of value calculation but excludes parts of expert testimony because they merely restated company assumptions and conclusions without undergoing testing from the expert.
Averaging Multiple Appraisals Yields Most Reliable FMV
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
Charron v. Sallyport Global Holdings, Inc.
In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.
Perez v. Bruister (I)
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
Yet Again, Delaware Looks to DCF in Appraisal Action
PNC Financial Services Group Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding’s subsidiary, PFPC Worldwide Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.
Valuation Upheld Against Party That Fails to Use Independent Valuation Sources
Verizon Inc. had offered to buy MCHC’s majority holder, Palmer Wireless Holdings (Palmer), if Verizon’s initial public offering was successful and if Palmer could acquire 100% of the stock in all of the companies it held.
Andaloro v. PFPC Worldwide, Inc.
PNC Financial Services Group, Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding's subsidiary, PFPC Worldwide, Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.
Montgomery Cellular Holding Co., Inc. v. Dobler
Verizon Inc. had offered to buy MCHC’s majority holder, Palmer Wireless Holdings (Palmer), if Verizon’s initial public offering was successful and if Palmer could acquire 100% of the stock in all of the companies it held.
Premise of Value Issue in Bankruptcy
The issue in this Chapter 11 bankruptcy is whether the secured creditors would receive more under a liquidation of the debtors’ businesses under Chapter 7 than they would under the Chapter 11 plan.
In re Lason, Inc.
At issue in this case is whether or not the asset in question can be valued as a going concern at fair market value.
Computing terminal value
In reviewing the Cost of Capital book, page 16, we noted Dr. Pratt's comments about the error in treating EBITDA as free cash flow. We also noted that Dr. Pratt utilizes net cash flow in his discussion of the Gordon Growth Model and the Two-Stage Model shown on pages 25 to 29.
Valuation of high-tech companies requires modification of standard approaches
The valuation of early stage technology companies ("high-tech") is significantly more challenging than valuing more mature businesses in other industries. These companies are commonly characterized by ...
Smaller companies have much higher cost of capital than big companies; Pratt's Stats multiples strikingly different
A new study on the Pratt's Stats database shows consistently lower valuation multiples for small companies than for "middle market" companies. The top company in the 10th size decile of Ibbotson ...
Valuation multiples and control premiums down in 4th quarter 2001
With five valuation multiples plus control premiums for almost 3,000 transactions spread over 16 quarters now in the Mergerstat/Shannon Pratt's Control Premium Study (CPS ), it becomes quite inter ...
Mergerstat / Shannon Pratt's Control Premium Study and Mergerstat® Review are two distinct services
One of the questions I am asked frequently is, What is the difference between Mergerstat/Shannon Pratt's Control Premium Study ( Control Premium Study ) and Mergerstat® Review? This column addres ...
Pratt's Stats shows decreasing MVIC/EBITDA multiples
We are interested in knowing how the values of privately held companies in different industries have fluctuated in the last six years, and look at the Pratt's Stats database to find out.
A wealth of public company information
www.CorporateInformation.com Providing researchers with over 350,000 company profiles and 15,000 research reports, CorporateInformation is one of the most comprehensive and useful sites co ...
Ten mistakes in valuation
In this timeless article, investment banker and M&A professional Russell Robb discusses some common mistakes in business valuations and how to avoid them. – LK 1. Not verifying the qual ...
Control Premium Study shows decline in market multiples
Mergerstat/Shannon Pratt's Control Premium Study , published by Mergerstat, LP, 2001. Distributed by Business Valuation Resources, LLC, 7412 SW Beaverton-Hillsdale Hwy., Suite 106, Portland, OR ...
As bank loan/EBITDA ratios decline, mezzanine financing flourishes
This is a follow-up story to the article covering the Alliance of Merger and Acquisition Advisors private equity panel in the September BVU . This interview on mezzanine financing covers the next tie ...
Sodaro v. Sodaro
One issue on appeal was whether the trial court double counted income from the husband's psychiatry practice that was also equitably distributed as marital property.
New York Court Finds Excess Earnings Double Counted
In this marital dissolution case, the husband, a psychiatrist with a successful private practice, appealed the judgment of the trial court ordering him to pay monthly spousal maintenance pay ...
A primer on hospital valuations
We are publishing this article on hospital valuation in two parts. The first part of the article gives you background on hospital valuation and discusses trends. The second part of the article, which ...
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