Smith v. Promontory Financial Group, LLC
In buyout dispute, court says parties’ letter of intent states buyout conditions; court relies on amount stated in plaintiff’s debt/equity deal proposal to value subject company, finding parties’ trial experts used methods (DCF and asset accumulation) not suited to valuing subject company.
Delaware Chancery Relies on Deal Proposal Valuation in Adjudicating Buyout Dispute
In buyout dispute, court says parties’ letter of intent states buyout conditions; court relies on amount stated in plaintiff’s debt/equity deal proposal to value subject company, finding parties’ trial experts used methods (DCF and asset accumulation) not suited to valuing subject company.
European goodwill impairment down 35% in 2017
Total goodwill impairment recorded by European-listed companies in the STOXX® Europe 600 dropped 35%, to €18.5 billion, in 2017, according to the ‘2018 European Goodwill Impairment Study,’ from Duff & Phelps.
University of Bath professors document problems with goodwill in purchase price allocations
Researchers from University of Bath, working in conjunction with a team at the University of Hong Kong, find that investors underreact to high goodwill-to-sales ratios.
Valuing goodwill in divorce: State-by-state breakdown of enterprise & professional goodwill jurisprudence
Appraisers working on divorce cases know that goodwill is a fundamental concept they have to master. What makes it challenging is that divorce is a state matter and that different states adhere to different rules as to how to treat goodwill. BVR is excited to offer legal and valuation professionals a handy reference guide that includes a state-by-state breakdown of goodwill jurisprudence
Global BV News: European goodwill impairment down 35% in 2017
Total goodwill impairment recorded by European-listed companies in the STOXX® Europe 600 dropped 35%, to €18.5 billion, in 2017, according to the “2018 European Goodwill Impairment Study,” from Duff & Phelps.
In re Aerogroup International, Inc.
Bankruptcy court performs allocation analysis to divide proceeds from section 363 asset sale between two competing lenders, finding debtor’s intellectual property is most valuable asset; court notes that, at time of sale, debtor was neither healthy going concern nor subject of forced liquidation.
For a divorce, how many components are there in goodwill?
In divorce cases, it may be necessary to carve up goodwill because, in many jurisdictions, enterprise goodwill is marital property, but personal goodwill is not.
Marroquin v. Marroquin
Appeals court upholds trial court’s valuation of husband’s vending machine business, finding this one-person operation is akin to sole proprietorship in which any goodwill is attributable to husband’s personal efforts and reputation for competency; court says goodwill is not a marital asset.
No Enterprise Goodwill in One-Person Business, Utah Appeals Court Confirms
Appeals court upholds trial court’s valuation of husband’s vending machine business, finding this one-person operation is akin to sole proprietorship in which any goodwill is attributable to husband’s personal efforts and reputation for competency; court says goodwill is not a marital asset.
BVU News and Trends March 2019
A monthly roundup of key developments of interest to business valuation experts.
Tips for Valuing—and Designing—Buy-in and Buyout Agreements for Medical/Dental Practices
After hundreds of engagements, the author identifies a number of best practices for both the valuation analyst and the consultant with respect to buy-in/buyout arrangements.
BVU News and Trends February 2019
A monthly roundup of key developments of interest to business valuation experts.
For goodwill, sometimes simpler is better
In last week’s BVWire, we covered a divorce case in which the husband’s valuation expert used the multiattribute utility model (MUM) framework for separating personal and enterprise goodwill.
PwC examines SEC comment letters
You can learn a lot from the large amount of back-and-forth communications between the SEC and companies over fair value measurement issues.
Simplified MUM approach weathers attacks in Illinois divorce case
One of the key questions in an Illinois divorce case was how to allocate goodwill between enterprise and personal goodwill.
Goodwill impairments up 23% in 2017
Total goodwill impairment rose to $35.1 billion in 2017, up 23% over the prior year, according to the “2018 U.S. Goodwill Impairment Study” by Duff & Phelps.
Experts clash over definition of ‘net worth’ in New Jersey buyout dispute
Business partners often think that a buyout agreement will forestall future conflicts. A recent New Jersey case proves the opposite.
Stephanos v. Stephanos (In re Marriage of Stephanos)
Trial court adopts goodwill value determination of wife’s expert (residual method) as well as expert’s finding that none of goodwill in family business is personal to owner spouse; business’s success was not dependent on owner’s continued presence or his execution of a noncompete, court says.
Divorce Court Finds No Personal Goodwill Value in Single-Owner Business
Trial court adopts goodwill value determination of wife’s expert (residual method) as well as expert’s finding that none of goodwill in family business is personal to owner spouse; business’s success was not dependent on owner’s continued presence or his execution of a noncompete, court says.
Verizon’s $4.6 billion impairment
What’s in a (brand) name?
Multiples Used to Estimate Automotive Dealerships Market Value
Practitioners use goodwill multiples for valuing automobile dealerships. In this paper, the valuation accuracy of five goodwill multiples and seven more traditional multiples that can be used for estimating the market value of the equity of car dealerships is assessed during the 2010–2016 period. Our results support that the goodwill multiples provide the smallest estimation errors in valuing the market value of automobile dealerships.
Namerow v. PediatriCare Associates, LLC
In pediatrician buyout suit, court says practice’s operating agreement requires net worth calculation; court agrees with defense expert’s definition of “net worth” as the value of assets minus liabilities, as stated in the balance sheets, and rejects proposed inclusion of intangible assets.
Court Says Expert’s Inclusion of Intangible Assets Violates Buyout Agreement
In pediatrician buyout suit, court says practice’s operating agreement requires net worth calculation; court agrees with defense expert’s definition of “net worth” as the value of assets minus liabilities, as stated in the balance sheets, and rejects proposed inclusion of intangible assets.
Saltzer v. Rolka
In buyout dispute, appellate court upholds trial court’s valuation of company, which applies company-specific risk discount related to uncertain extension of company’s key contract but does not deduct value of personal goodwill attributable to remaining members.