How to Address Market Efficiency for Appraisal Hearings
In statutory appraisal matters in the Delaware Court of Chancery, the court has shifted its attention away from dueling experts and more toward using a stock’s market price as the best measure of fair value. Valuation experts who come up with a different value would, therefore, need to prove that the market is not efficient.
BV News and Trends September 2023
A monthly roundup of key developments of interest to business valuation experts.
Court has limited menu for steakhouse valuation
In a Michigan case, two 50% owners of a Ponderosa steakhouse were locked in a battle over the Old West-themed eatery, with both owners engaging in oppressive conduct against the other. They left it up to the court to decide their fate.
BVResearch Pro adds to its archive of the ASA’s BV Review
Among many other resources, the BVResearch Pro platform contains the full archive of the Business Valuation Review going back to 1982.
Valuation expert’s credibility takes several hits
In a New York fair value case, one of the 50% owners filed for dissolution and the other owner elected to buy him out.
Implied Control Premiums Through Delaware Appraisal Decisions
The valuation industry has utilized the concepts of control premiums and corresponding discounts for lack of control (DLOC) for decades. There has been considerable debate regarding the application of control premiums paid to acquire public companies, given the likely existence of synergies embedded within those premiums. This article analyzes implied control premiums using Delaware Court of Chancery (the “Court”) decisions in which the Court determined the fair value of the shares of formerly public companies.
Dealing with market efficiency in appraisal hearings
Weary of dueling experts, the Delaware Court of Chancery has shifted its attention more toward using a stock’s market price as the best measure of fair value in statutory appraisal matters.
Bank Valuations 2023
Valuing a bank has never been more challenging or important than it is today, given the dynamic interest rate and macro environment. This presentation will walk through the various methodologies for determining a bank’s value and how the current environment is affecting that analysis. We will also cover fair value implications associated with bank valuation and M&A and its consequences for bank capital and regulatory approval.
Rosenthal v. Erber
In a New York business dispute, the court analyzed valuation reports from both sides and then determined the fair value of the entity and of the selling shareholder’s 50% interest. Offering criticisms of both reports, she then started with the report of the selling shareholder’s report and discarded the report of the buying shareholder, which had some evidentiary issues as to back rent due and other issues.
Fair Value Decision Analyzes Valuation Issues
In a New York business dispute, the court analyzed valuation reports from both sides and then determined the fair value of the entity and of the selling shareholder’s 50% interest. Offering criticisms of both reports, she then started with the report of the selling shareholder’s report and discarded the report of the buying shareholder, which had some evidentiary issues as to back rent due and other issues.
ASA Fair Value Conference—Winter on December 7
Ray Rath (Baker Tilly US LP) tells BVWire that the winter edition of the ASA Fair Value Conference will be held on December 7.
Fair Value, Statutory Appraisals, Crypto, ESG, PE Deals, and More at the NYSSCPA BV Conference
As usual, the annual New York State Society of CPAs’ Business Valuation and Litigation Services Conference presented some very interesting and useful information. This article provides a recap of what was discussed.
Herremans v. Fedo (In re Herremans)
This case involved a hotly contested battle over the fate of a Ponderosa restaurant in Michigan. The two owners, having had a falling out, pursued contentious litigation to wrest control of the restaurant from each other. Having no business valuation available to the court, the court was left with a real estate appraisal and limited evidence of assets and liabilities to determine the fair value of a 50% interest in the restaurant to be used in the buyout of one of the shareholders by the other shareholder.
Bankruptcy Court Determines Fair Value Under Asset Approach With ‘Limited Evidence’ Available to It
This case involved a hotly contested battle over the fate of a Ponderosa restaurant in Michigan. The two owners, having had a falling out, pursued contentious litigation to wrest control of the restaurant from each other. Having no business valuation available to the court, the court was left with a real estate appraisal and limited evidence of assets and liabilities to determine the fair value of a 50% interest in the restaurant to be used in the buyout of one of the shareholders by the other shareholder.
Takeaways From the Record-Breaking ASA New York Fair Value Conference
In-person capacity was sold out, and virtual attendance brought the total to about 300—a new attendance record—for the ASA Spring Fair Value Conference in New York City May 4. Topics included inflation impacts on valuation, audit targets, the new AICPA business combinations guide, ESG, PE valuations, and more.
BV News and Trends May 2023
A monthly roundup of key developments of interest to business valuation experts.
Notable takeaways from the NYSSCPA BV conference
BVWire attended last week’s annual New York State Society of CPAs’ Business Valuation and Litigation Services Conference, and—as usual—some very interesting and useful information was presented.
Fair value credential to be sunset, conference speakers say
The news that the Certified in Entity and Intangible Valuations (CEIV) credential was being discontinued stunned some attendees at the ASA Fair Value Spring Conference in New York City on May 4.
More news from the ASA Fair Value Conference
In addition to the news that the CEIV credential was being discontinued (see previous item in this issue), here are some other takeaways from the ASA Fair Value Spring Conference in New York City on May 4.
Tomorrow: ASA New York Fair Value Conference
BVWire is looking forward to attending the ASA Spring Fair Value Conference in New York City tomorrow, May 4.
May kicks off BV conference season!
Flowers bloom in May and so do business valuation conferences—and most of them have a virtual option.
NFT Valuation: What You Need To Know
In 2021, nonfungible token (NFT) prices drastically increased and then dropped substantially just over year later. These digital assets can be difficult to grasp, but they now play a role in personal investment portfolios and on company balance sheets. As a result, valuations of digital assets will be needed for issues such as divorce litigation, estate valuations, bankruptcy litigation, fair value measurements, and more. This presentation will demystify these investments and teach attendees how the ...
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends March 2023
Business valuation news from a global perspective.
Judicial appraisal needs reform per new paper
A recent paper addresses the problem of the “wide discretion” judges have in fashioning appraisal awards to dissenting shareholders based on opinions of valuation experts that are miles apart.