Experts Propose Equally Sound, but Diverging, Valuations
Appellate court upholds valuation of husband’s business where trial court faced two equally plausible values from experienced appraisers who gave “reasoned explanations” for their differing choices as to the treatment of a year with unusually high income ...
Estate of Richmond
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 ...
Washington Mutual, Inc. v. United States
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.
Tax Court Foils ‘End Run’ Around Expert Rules
Tax Court rejects taxpayer’s attempt to place in evidence a new appraisal regarding the decedent’s interest in an LLC whose principal asset was real estate by way of stipulation, finding he failed to qualify the appraiser as an expert and did not present ...
Bankruptcy Court Wary of Asset Approach in Solvency Analysis
Bankruptcy Court values Chapter 11 debtor on a going concern basis and finds the income approach is best suited to determine solvency at the time of critical financial transactions; the defendants’ expert properly relied on a contemporaneous Goldman Sachs ...
Estate of Tanenblatt v. Commissioner
Tax Court rejects taxpayer’s attempt to place in evidence a new appraisal regarding the decedent’s interest in an LLC whose principal asset was real estate by way of stipulation, finding he failed to qualify the appraiser as an expert and did not present ...
Myhre v. Myhre
Appellate court upholds valuation of husband’s business where trial court faced two equally plausible values from experienced appraisers who gave “reasoned explanations” for their differing choices as to the treatment of a year with unusually high income ...
Trustee Claims Bankruptcy Court Flouted Valuation Rules
District court affirms bankruptcy court’s valuation of hospital under income approach and finds its treating a $20.6 million capital transfer as surplus rather than a necessary asset for operations is not double counting and is reasonable under the facts ...
With Expert Help, N.Y. Court Computes Deli’s Fair Value
New York court enlists expert valuators to determine the fair value of a deli, occupying a “unique niche,” following the death of one of two equal owners; the court adopts the defendant expert’s income approach, but rejects the proposed 20% lack of market ...
Expert’s ‘Invocation’ of Income Approach Does Not Save Valuation
Court says federal law, that is Daubert, controls admissibility of expert testimony in federal court and rejects defendants’ claim that expert was unqualified under state law; but it finds the opinion inadmissible because it resulted from an approach that ...
Ruggiero v. Ruggiero
New York court enlists expert valuators to determine the fair value of a deli, occupying a “unique niche,” following the death of one of two equal owners; the court adopts the defendant expert’s income approach, but rejects the proposed 20% lack of market ...
Alberts v. HCA, Inc.
District court affirms bankruptcy court’s valuation of hospital under income approach and finds its treating a $20.6 million capital transfer as surplus rather than a necessary asset for operations is not double counting and is reasonable under the facts ...
Metamining, Inc. v. Barnette
Court says federal law, that is Daubert, controls admissibility of expert testimony in federal court and rejects defendants’ claim that expert was unqualified under state law; but it finds the opinion inadmissible because it resulted from an approach that ...
Whyte v. C/R Energy Coinvestment II, L.P. (In re SemCrud)
Bankruptcy Court values Chapter 11 debtor on a going concern basis and finds the income approach is best suited to determine solvency at the time of critical financial transactions; the defendants’ expert properly relied on a contemporaneous Goldman Sachs ...
Matter of Adelstein v. Finest Food Distributing Co. (I)
In oppressed shareholder stock valuation proceeding, trial court credits testimony of credentialed appraiser, lauding his methodical approach, use of various methods to cross-check values, and understanding of legal principles related to valuation.
New York Compares ‘Double Dipping’ for Professional Licenses vs. Income-Producing Assets
New York Supreme Court considers extending prohibition against double counting from professional licenses to tangible assets.
Keane v. Keane
New York Supreme Court considers extending prohibition against double counting from professional licenses to tangible assets.
Davidson v. Davidson (I)
The Michigan Court of Appeals affirmed the use of the market approach rather than an income capitalization method to value the parties’ businesses under the facts of this case. The lower court found the market approach more appropriate in light of the com ...
Tax Court Finds 12% Minority Discount and 23% DLOM for Cash-Only FLP
In April 1999, Webster Kelley and his daughter and son-in-law (the Loudens) formed Kelley-Louden Business Properties LLC (KLBP LLC), and Kelley-Louden Ltd., a family limited partnership (KLLP).
Estate of Kelley v. Commissioner
In April 1999, Webster Kelley and his daughter and son-in-law ("the Loudens") formed Kelley-Louden Business Properties, LLC (KLBP LLC), and Kelley-Louden, Ltd., a family limited partnership (KLLP).
Different Income Valuations May Be Used to Determine Equitable Distribution and Alimony, Provided They Are Fair and Statutorily Compliant
The main issue in this marital dissolution case was whether in setting an award of alimony and in establishing equitable distribution in respect of a closely held corporation, the same income determination must be used.
No Earlier Valuation Date Where No Evidence of Extraordinary Effort; Capitalization of Historical Earnings OK for Business Operating One Year
In this marital dissolution, there were two main issues: the correct valuation date of husband’s interest in Washford Enterprises, a group home, and whether wife’s expert, William Dacey, correctly applied the income approach.
Stock restriction agreement is not determinative of value for equitable distribution
One of the issues in this marital dissolution was the value of husband’s 1000 shares of nonvoting stock in the Sanger Clinic, P.A., where he was a senior partner.