A.A. v. B.A.
In valuing owner’s financial advisory business organized as sole proprietorship, court rejects idea that prior case law on goodwill in solely owned business precludes assigning goodwill to business; court says commissions earned during marriage but received post-separation or post-divorce are marital.
Delaware Court Revisits Issue of Goodwill in Sole Proprietorship
In valuing owner’s financial advisory business organized as sole proprietorship, court rejects idea that prior case law on goodwill in solely owned business precludes assigning goodwill to business; court says commissions earned during marriage but received post-separation or post-divorce are marital.
Defendant in Vinoskey ESOP case files appeal with 4th Circuit
In the contentious Vinoskey ESOP case, one of the defendants, the owner and selling shareholder, Adam Vinoskey, recently appealed the district court’s finding that he was liable for knowingly participating in the trustee defendant’s ERISA violations and was a co-fiduciary for the trustee’s breaches of fiduciary duties.
Marshall v. Marshall (II)
On second review, appeals court says trial court satisfied task on remand; latter’s use of reasonable compensation calculation to establish income for alimony and child support purposes was in the spirit of parties’ agreement and was based on “entirely credible” testimony by husband’s BV expert.
Courts Agree Reasonable Compensation Is Sound Method for Calculating Spousal Support in S Corp Context
On second review, appeals court says trial court satisfied task on remand; latter’s use of reasonable compensation calculation to establish income for alimony and child support purposes was in the spirit of parties’ agreement and was based on “entirely credible” testimony by husband’s BV expert.
Precision Kidd Acquisition, LLC v. Pass
In merger-related damages case, court upholds damages based on profits lost from key client’s termination of supply agreement with seller company; trial court properly rejected buyer expert’s DCF-based loss analysis which, among other flaws, overstated value of lost contract to seller company.
Proper Damages Measure Is Lost Profits Calculation, Not DCF-Based Loss Analysis
In merger-related damages case, court upholds damages based on profits lost from key client’s termination of supply agreement with seller company; trial court properly rejected buyer expert’s DCF-based loss analysis which, among other flaws, overstated value of lost contract to seller company.
BVU News and Trends September 2020
A monthly roundup of key developments of interest to business valuation experts.
Tips on how to help settle a divorce during COVID-19
How do you resolve a divorce case during COVID-19, when many businesses in all kinds of industries are coping with significant losses and continuing uncertainty over future performance?
In re Happy Child World, Inc.
In an entire-fairness-cum-statutory-appraisal case involving nonoperating day care center whose facility was leased on merger date, court approves use of capitalization of earnings and NAV models and averaging results to determine fair value; business model was uncertain on merger date, court notes.
Uncertain Business Model on Merger Date Justifies Use of Income and NAV Models, Court Says
In an entire-fairness-cum-statutory-appraisal case involving nonoperating day care center whose facility was leased on merger date, court approves use of capitalization of earnings and NAV models and averaging results to determine fair value; business model was uncertain on merger date, court notes.
10 Takeaways From the AAML/BVR Virtual Divorce Conference
Family law attorneys, valuation professionals, and industry experts shared advice during the AAML/BVR Virtual Divorce Conference, which is ongoing and will continue tomorrow, September 24.
In court, facts are not enough—it’s the nonverbal that counts
If you think that the facts speak for themselves in court, think again, says Deborah Johnson, MC, president of High-Stakes Communication.
‘Overstated’ projections sink plaintiff’s fair value determination
Earlier this year, a New York trial court presiding over a buyout dispute featuring an online wholesaler of faucets, sinks, and fixtures rebuffed the departing shareholder’s valuation.
Beware of this loaded question about projections amid COVID-19
Projections have always attracted scrutiny, but the pandemic has intensified this attention.
Top-notch tips for virtual court appearances
There’s a lot more to making a good appearance in court when you have to testify virtually.
Maryland commits to Daubert for evaluating admissibility of expert testimony
In a critical move, Maryland’s highest court recently changed the standard for the admission of expert testimony when it abandoned the existing two-channel approach in favor of Daubert.
Boesch v. Holeman (I)
In dispute over value of dissociated partner’s one-third interest in whiskey business, appeals court says trial court erred in adopting value determination that applied discount for lack of control; applicable partnership law requires value be based on sale of entire business as a going concern.
Partnership Statute Precludes Use of Minority Discount in Buying Out Dissociated Partner
In dispute over value of dissociated partner’s one-third interest in whiskey business, appeals court says trial court erred in adopting value determination that applied discount for lack of control; applicable partnership law requires value be based on sale of entire business as a going concern.
AAML/BVR Virtual Divorce Conference starts September 9
It’s a whole new world for valuations in the context of marital dissolution, so don’t miss the Virtual Divorce Conference, presented by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR).
BV experts may not be back in court for contentious valuations—yet
As UK courts begin to open again, the current government rule requires barristers and solicitors under mandatory 14-day isolation (if they’ve travelled to high-risk countries) to turn up to court if they have a hearing.
Flaws in North Carolina Court’s Appraisal of Reynolds American
The wrong valuation date, a faulty reliance on other cases and the disregard of projections highlight the court’s opinion in a shareholder dissent case involving two tobacco giants.
Rochkind v. Stevenson
In a split decision featuring a long-running tort case that hinged on medical expert testimony regarding plaintiff’s claims of lead poising, divided state high court abandons two-channel approach, including Frye general acceptance test, for Daubert standard of admissibility of expert testimony.
Split Maryland High Court Adopts Daubert for Testing Admissibility of Expert Testimony
In a split decision featuring a long-running tort case that hinged on medical expert testimony regarding plaintiff’s claims of lead poising, divided state high court abandons two-channel approach, including Frye general acceptance test, for Daubert standard of admissibility of expert testimony.
Free webinar tomorrow on valuations for marital dissolutions
Join us for a free, action-packed, 60-minute webinar of short compelling insights into business valuations in a divorce context from leading experts.