Stocker v. Stocker
Trial court did not err in adopting income-based valuation offered by husband’s expert; appeals court calls husband’s attack on his own expert “counterintuitive” where expert explained the value of the company was in its cash flow rather than its assets.
Court Rebuffs Litigant’s Attack on Own Expert’s Income-Based Valuation
Trial court did not err in adopting income-based valuation offered by husband’s expert; appeals court calls husband’s attack on his own expert “counterintuitive” where expert explained the value of the company was in its cash flow rather than its assets.
Direct Evidence of Price Impact Not Always Necessary, 2nd Circuit Says
In a securities fraud action, appeals court upholds class certification; trial court did not err when it found direct evidence of price impact by way of event study was not necessary to show market efficiency where there was strong indirect evidence.
Waggoner v. Barclays PLC
In a securities fraud action, appeals court upholds class certification; trial court did not err when it found direct evidence of price impact by way of event study was not necessary to show market efficiency where there was strong indirect evidence.
2nd Circuit Affirms Nixing of Award Due to Bad Yardstick Analysis
Appeals court validates nixing of future lost profits award where expert calculated damages for a startup company based on revenues of market leader; court finds expert failed to use reasonable comparator, making his yardstick analysis legally unsound.
Washington v. Kellwood Co. (IV)
Appeals court validates nixing of future lost profits award where expert calculated damages for a startup company based on revenues of market leader; court finds expert failed to use reasonable comparator, making his yardstick analysis legally unsound.
Tax Court Introduces Formula to Value Donated Remainder Interest
Tax Court rules for IRS in disallowing deduction for charitable contribution involving remainder interest in leased property; requisite appraisal summary omits vital information, and court’s valuation formula shows donor made gross valuation misstatement.
High Court Finds Chancery’s Weighting of Values Unexplained and Inexplicable
State Supreme Court declines to create presumption for appraisal actions that deal price is best indicator of value when merger was arm’s-length transaction, but court finds Chancery’s valuation approach lacked support in record and requires revaluation.
DCF Projections Failed to Reflect Target’s Operative Reality, Chancery Says
In joint fiduciary-appraisal action centering on Sprint’s acquisition of minority interest in related entity, Chancery says merger was entirely fair and adopts respondent expert’s DCF analysis; huge value gap is 90% due to experts’ choice of projections.
Vedros v. Vedros
Court says discounting for lack of marketability of minority interest in home healthcare agency, operating as an S corporation, is appropriate where LLC agreement included transfer restrictions and partners were not planning to buy out owner spouse.
Facts Support Discounts in Valuation of Small Healthcare Agency
Court says discounting for lack of marketability of minority interest in home healthcare agency, operating as an S corporation, is appropriate where LLC agreement included transfer restrictions and partners were not planning to buy out owner spouse.
Brusach v. Brusach
In divorce case featuring veterinary practice, appeals court finds trial court did not err when it did not differentiate between personal and enterprise goodwill and trial court’s spousal support determination did not represent unlawful double dipping.
Court Declines to Set Firm Rules on Goodwill and Double Dipping
In divorce case featuring veterinary practice, appeals court finds trial court did not err when it did not differentiate between personal and enterprise goodwill and trial court’s spousal support determination did not represent unlawful double dipping.
Trial Court’s Physician Practice Valuation Lacks Factual Basis
Goodwill, excess earnings method, market-based approach, capitalization rate, multiple, expert testimony, professional corporation, professional practice, valuation methods ...
Abedi v. Abedi
Court of Appeal says trial court’s valuation of husband’s endodontic practice was arbitrary where trial court adopted valuation methods husband’s experts proposed but substituted key elements of their analyses with court’s own unsubstantiated figures.
Tax Court Favors IRS’s Cost Markup Analysis to Compute Management Fee
In a suit over fees paid by taxpayers’ operating companies to taxpayer-controlled management company, Tax Court says IRS expert’s cost markup analysis produces most credible arm’s-length management fee; this fee represents the allowable deduction amount.
Wycoff v. Commissioner
In a suit over fees paid by taxpayers’ operating companies to taxpayer-controlled management company, Tax Court says IRS expert’s cost markup analysis produces most credible arm’s-length management fee; this fee represents the allowable deduction amount.
Muszynski v. Muszynski
Trial court adopts valuations of wife’s expert for husband’s 50% interest in waste industry company, finding expert used methods that properly separated out husband’s personal goodwill; court also accepts inclusion of identifiable intangibles shown to belong to company; appeals court affirms.
Court Validates Expert’s Method for Separating Out Owner’s Personal Goodwill
Trial court adopts valuations of wife’s expert for husband’s 50% interest in waste industry company, finding expert used methods that properly separated out husband’s personal goodwill; court also accepts inclusion of identifiable intangibles shown to belong to company; appeals court affirms.
Court Stands Behind Earlier ESOP Liability and Damages Rulings
Notwithstanding errors related to the court’s liability and damages determinations, the court rejects trustee’s motion for reconsideration as an inappropriate effort to introduce new legal theories and a late attempt to present a competing damages methodo ...
‘Fanciful’ Projections Make DCF an Unreliable Tool in Appraisal Proceeding
In statutory appraisal, Chancery decides to “defer” to deal price, citing a robust sales process and well-functioning market; petitioners’ DCF analysis was not a useful valuation tool where it was based on, “at best, fanciful” management projections.
Chancery’s DCF Upends Appraisal Arbitrage Strategy
In statutory appraisal, Chancery relies solely on DCF analysis, noting the instant case involving a bank holding company raises a unique situation in terms of management projections and whether and how to account for creation of excess regulatory capital.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
McNee v. McNee
Trial court did not err in classifying owner-spouse’s personal loan to his business during marriage as a marital asset, appeals court finds; loan could be seen as an increase in value of owner’s business or a debt owed to parties, appeals court says.
Different Theories Justify Classifying Loan to Business as Marital Asset
Trial court did not err in classifying owner-spouse’s personal loan to his business during marriage as a marital asset, appeals court finds; loan could be seen as an increase in value of owner’s business or a debt owed to parties, appeals court says.