Chancery Relies on ‘Simple and Powerful’ DCF for Fair Value
Chancery finds gap separating fair value determinations of three valuation experts in a merger involving a privately held company “alarmingly” wide; court says only the DCF, “a simple and powerful concept,” achieves a reliable indicator of fair value.
Return on Equity Analysis Undergirds Reasonable Compensation Claim
Tax Court says compensation paid to company owners for managing entity’s daily operations was reasonable; officers were “absolutely integral” to company’s success and company’s rate of return on equity after compensation accorded with industry average.
H.W. Johnson v. Commissioner
Tax Court says compensation paid to company owners for managing entity’s daily operations was reasonable; officers were “absolutely integral” to company’s success and company’s rate of return on equity after compensation accorded with industry average.
DE Chancery Plumbs Merger Price for ‘Speculative Value Elements’
In statutory appraisal action, Chancery scrutinizes merger price for downward or upward adjustment based on improper inclusion of synergistic value or exclusion of value stemming from business opportunities arising prior to consummation of merger.
Huff Fund Investment Partnership v. CKx, Inc. (II)
In statutory appraisal action, Chancery scrutinizes merger price for downward or upward adjustment based on improper inclusion of synergistic value or exclusion of value stemming from business opportunities arising prior to consummation of merger.
Tax Court displeased with all experts’ DLOC and DLOM analyses
The primary issues in this gift tax case were the appropriate discounts for lack of control and lack of marketability to apply to gifted and sold interests of a family limited partnership.
Court Uses Raw Data From Bajaj Study to Determine DLOM
The only issue in this case was the fair market value of gifted family limited partnership (FLP) interests.
Peracchio v. Commissioner
Issues were appropriate discount for lack of control and discount for lack of marketability to apply in valuing gifts of family limited partnership interests.
Lappo v. Commissioner
The issue for decision is the fair market value of interests in a family limited partnership that petitioner transferred in 1996.
DEVELOPING VALUATION MULTIPLES USING GUIDELINE COMPANIES
n DEVELOPING VALUATION MULTIPLES USING GUIDELINE COMPANIES , Crow, Matthew R. CPA Litigation Service Counselor , Volume 1999, Issue 9, September 1999. In this brief, but informative, arti ...
Adjusting for growth
"Adjusting Pricing Multiples for Expected Growth," Stephen J. Bravo , Business Appraisal Practice , Spring 2000, pp. 33-38. After you have selected guideline companies and calculated their pricing m ...
Estate of Smith v. Commissioner
At issue is the value of Smith's shares of stock in two companies, Jones Farm Inc., and First National Bank of Waverly, as of her death.
Court Accepts Taxpayer's 76% Discount on Farm Corporation
The estate in this case held minority interests in two companies: Jones Farm Inc. (JFI) (33% ownership of common stock) and in the First National Bank of Waverly (FNBW) (12% of common stock).
Judge David Laro addresses 1998 AICPA Conference
Judge Laro emphasized the importance of valuation in the tax context with an impressive statistic: Taxpayers file approximately 15 million forms per year with a valuation of some property included.
Landmark court cases give educational insights
In ASA and AICPA classes that I taught in the last month, I cited certain landmark court cases, and several students who were already newsletter and BVU Online subscribers suggested that I share the ...
Minority interests in Market Valuation: An Adjustment Procedure
Becker, Brian C. "Minority Interests in Market Valuation: An Adjustment Procedure." Business Valuation Review, March 1997. pp. 27-31. The corporate ownerships of minority interests in other comp ...