Court Upholds Inclusion of Premarital Value in Property Distribution
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
Code & Code
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
In Buyout, Income-Based Expert Appraisal Beats Other Value Indicators
In partnership dispute, appeals court affirms redemption award based on multiple-of-earnings valuation, finding valuation was reliable and admissible under state equivalent of Daubert and trial court had discretion to disregard other indicators of value.
Lacoste v. Lacoste
Appeals court rejects trial court’s valuation of husband’s fitness training company noting trial court lacked necessary financial evidence as well as testimony from experts; appeals court remands requesting “adequate valuation,” excluding goodwill.
Court Disapproves of Nonexpert Valuation of Key Marital Asset
Appeals court rejects trial court’s valuation of husband’s fitness training company noting trial court lacked necessary financial evidence as well as testimony from experts; appeals court remands requesting “adequate valuation,” excluding goodwill.
In re DFC Global Corp.
Court says uncertainty about company’s future performance and viability limits reliability of values derived from DCF and multiples-based comparable company analyses as well as deal price; court blends three “imperfect techniques” to determine fair value.
Chancery Achieves Fair Value by Blending Three ‘Imperfect Techniques’
Court says uncertainty about company’s future performance and viability limits reliability of values derived from DCF and multiples-based comparable company analyses as well as deal price; court blends three “imperfect techniques” to determine fair value.
Court Snubs Lost Earnings Analysis Based on ‘Incomplete Use’ of Data
Court rejects expert’s loss of business opportunity and lost earnings calculations, finding capitalization of earnings method is inappropriate for valuing company with unstable earnings and lost salary projections are based on “incomplete use” of data.
Lay Testimony About Offer to Buy Represents Admissible Valuation Evidence
Appeals court says nonexpert testimony on a real-world offer to buy owner-spouse’s company was relevant and, therefore, admissible because it provided valuation evidence based on market approach; court remands for rehearing on all valuation testimony.
Expert’s Poor Grasp of Valuation Issues Undercuts Shareholder Suit
Appeals court affirms soundness of going private merger; court says plaintiffs failed to point to better offer and their expert lacked formal accounting, economics, and valuation training and displayed a light grasp of issues related to company’s value.
More Valuation Data Do Not Ensure Fair Class Action Settlement
In stockholder class action, Chancery declines to approve settlement that requires plaintiffs to agree to broad release of claims in exchange for additional valuation-related information, finding it fails to meet applicable “fair and reasonable” standard.
Jafar v. Mohammed
In partnership dispute, appeals court affirms redemption award based on multiple-of-earnings valuation, finding valuation was reliable and admissible under state equivalent of Daubert and trial court had discretion to disregard other indicators of value.
Bocek v. JGA Assocs., LLC
Court rejects expert’s loss of business opportunity and lost earnings calculations, finding capitalization of earnings method is inappropriate for valuing company with unstable earnings and lost salary projections are based on “incomplete use” of data.
Court Rebuffs Attempt to Allocate Excess Value to Intangible Assets
Bankruptcy Court rejects proposition that sales price increase has to be attributed to one debtor’s business, as goodwill, because other debtor’s real property allegedly remains constant in value; court denies request to change allocation of proceeds.
Pattridge v. Starks
In breach of noncompete case, appeals court finds measure of damages is not limited to net loss; statute allows damages “for the loss sustained” in addition to lost profits, and trial court properly credited and adjusted expert’s typical damages models.
Service Business Valuation Triggers Double-Dip Rule
New York appellate court finds trial court’s spousal support determination violated double counting rule where expert valued husband’s solely owned engineering company based on an income approach and the business was a service business.
In re Trulia Stockholder Litig.
In stockholder class action, Chancery declines to approve settlement that requires plaintiffs to agree to broad release of claims in exchange for additional valuation-related information, finding it fails to meet applicable “fair and reasonable” standard.
Berger v. Berger
Appeals court says nonexpert testimony on a real-world offer to buy owner-spouse’s company was relevant and, therefore, admissible because it provided valuation evidence based on market approach; court remands for rehearing on all valuation testimony.
Court Nixes Double-Dip Claim Based on Accounts Receivable Treatment
Appeals court rejects claim that accounts receivable used in asset-based business valuation by wife’s expert are analogous to future income stream for purposes of arguing double dip in light of income determination for spousal support award.
Rubin v. Bedford
Appeals court affirms soundness of going private merger; court says plaintiffs failed to point to better offer and their expert lacked formal accounting, economics, and valuation training and displayed a light grasp of issues related to company’s value.
Court Declines to Attribute Commercial Goodwill to Solo Practice
Appeals court affirms trial court’s ruling finding that, without noncompete from owner-spouse, under FMV standard, financial advisor’s solo practice fetches only net book value of its tangible assets; most of value lies in owner-spouse’s personal goodwill ...
Damages Opinion Reveals ‘Serious Misconception’ of Role of Expert
Court excludes most of rebuttal opinion under Daubert, saying it is not “the product of reliable principles and methods” owing to expert’s “serious misconception of his role and misreading of the authorities he cites,” particularly with regard to causatio ...
In re Case No. 800 Bourbon St.
Bankruptcy Court rejects proposition that sales price increase has to be attributed to one debtor’s business, as goodwill, because other debtor’s real property allegedly remains constant in value; court denies request to change allocation of proceeds.
Husband's Roles in Company Negate Need for DLOC
Court affirms valuation of husband’s minority interest in business featuring zero DLOC where husband was key driving force behind business’s success and wielded influence and control; use of asset approach rendered double-dip theory inapplicable.
Gifford v Gifford
New York appellate court finds trial court’s spousal support determination violated double counting rule where expert valued husband’s solely owned engineering company based on an income approach and the business was a service business.