Wright v. Irish (Hudson Valley Clean Energy, Inc.)
Court discredits respondent expert’s capitalization of earnings calculation and market-based analysis, noting “severe deficiencies” and instead adopts petitioner expert’s valuation but applies DLOM to entire equity value, not just goodwill.
Can You Trust a Valuation That Falls Short of AICPA Standards?
Appeals court finds error in trial court’s refusal to value business; even if limited data caused expert’s estimate to fall short of AICPA standard, it was based on the market approach, a “sound and reasonable method to value a closely-held business.”
A Time Limit on Use of Destruction of Business Method?
Court finds damages expert’s use of destruction of business method is not improper despite a four-year gap between the alleged offending conduct and the company’s demise, and it does not render his calculation inadmissible under Daubert.
Cavallaro v. Commissioner
Taxpayer parents incurred gift tax liability when, based on improper valuations, they agreed to merge their S corp. with their sons’ S corp. and accepted an unduly low interest in the new company while sons received an unduly high interest, Tax Court says ...
In Buyout, Court Extols Expert’s Valuation and Legal Acumen
Appeals court affirms trial court’s valuation of oppressed shareholder’s minority interest in family business based on credentialed appraiser’s “clear, thorough, professional, and reliable” opinion and knowledge of New York valuation-related law.
In Buyout, Court Extols Expert’s Valuation and Legal Acumen
Appeals court affirms trial court’s valuation of oppressed shareholder’s minority interest in family business based on credentialed appraiser’s “clear, thorough, professional, and reliable” opinion and knowledge of New York valuation-related law.
Taxpayer Scores Partial Success in Cal. Hotel Property Tax Suit
Appeals court says assessor’s version of income approach to determine hotel property taxes violates law because it does not identify, value, and exclude certain intangible assets; but management fee deduction largely captures hotel’s goodwill.
Browne v. Browne, Jr.
Appeals court defers to trial court’s method of applying one expert’s cap rate to other expert’s cash flow analysis when valuing spouse’s interest in closely held company and says “purposeful” application of minority discount has support among valuators.
B & L Development LLC v. City of Norton Shores
Appeals court says tax tribunal did not abdicate its gatekeeper role under Rule 702 when admitting taxpayer expert’s appraisal, where the expert was qualified and used a reliable methodology; a searching inquiry into the underlying data was not necessary.
Bobby Fisher, Inc. v. Cerveceria Costa Rica, S.A.
Court rejects plaintiff’s lost profits approach to quantify diminished value of business due to loss of beer brands because of “untenable suppositions”; defendant’s income-based calculation was “only rational” approach offered in this case, court says.
For DLOM, Court Looks to Signs of Sale of Practice
Court affirms income-based valuation of husband’s dental clinic, including deduction for non-compete attributable to associate, but finds lack of signs that husband intended to sell practice precludes use of DLOM.
Court Affirms ‘Market Valuation Assessment’ of Family Businesses
Expert’s “market valuation assessment” to estimate sale price of husband’s two businesses satisfies principles for valuation of closely held company, says appeals court; case law looks to IRS Revenue Ruling 59-60, but disfavors use of book value.
Debtor’s Challenges Justify Bankruptcy Court’s Emergence Risk Premium
District court finds unique risks facing debtor in bankruptcy and emerging from it justify Bankruptcy Court’s increase of proposed discount rate and record supports confirmation of reorganization plan.
MacDermid Printing Solutions, Inc. v Cortron Corp.
Court finds damages expert’s use of destruction of business method is not improper despite a four-year gap between the alleged offending conduct and the company’s demise, and it does not render his calculation inadmissible under Daubert.
Hugh v. Hugh
Appeals court finds error in trial court’s refusal to value business; even if limited data caused expert’s estimate to fall short of AICPA standard, it was based on the market approach, a “sound and reasonable method to value a closely-held business.”
DCF Model Proves Unreliable Tool for Ascertaining Cost Basis
Court finds numerous problematic assumptions make plaintiff expert’s DCF model unreliable indicator of FMV of thrift’s branching right; without this value, plaintiff is unable to establish the right’s cost basis and support its tax refund claim.
SHC Half Moon Bay, LLC v. County of San Mateo
Appeals court says assessor’s version of income approach to determine hotel property taxes violates law because it does not identify, value, and exclude certain intangible assets; but management fee deduction largely captures hotel’s goodwill.
Tax Ct. How-to of Valuing Holding Company, Avoiding Accuracy Penalty
Tax Court favors net-asset-value over capitalized-dividend approach for FMV determination of interest in holding company with marketable securities because NAV starts out on “firm ground” with stock prices one can look up whereas income approach relies en ...
Matter of Adelstein v. Finest Food Distributing Co. (II)
Appeals court affirms trial court’s valuation of oppressed shareholder’s minority interest in family business based on credentialed appraiser’s “clear, thorough, professional, and reliable” opinion and knowledge of New York valuation-related law.
Barnes v. Barnes
Court affirms income-based valuation of husband’s dental clinic, including deduction for non-compete attributable to associate, but finds lack of signs that husband intended to sell practice precludes use of DLOM.
Prevost v. Prevost
Expert’s “market valuation assessment” to estimate sale price of husband’s two businesses satisfies principles for valuation of closely held company, says appeals court; case law looks to IRS Revenue Ruling 59-60, but disfavors use of book value.
Vision-Park Properties v. Seaside Engineering
District court finds unique risks facing debtor in bankruptcy and emerging from it justify Bankruptcy Court’s increase of proposed discount rate and record supports confirmation of reorganization plan.
In re Marriage of Valente
Appeals court says awarding wife a portion of business and a maintenance award is not double recovery (double dipping) where husband’s reasonable replacement compensation “was carved out of the income streams used for the valuation.”