Court Rejects 'Historical Average Income Approach' to Valuing Contingency Fees
In this marital dissolution case, the trial court determined that husband’s right to contingency fees from his legal practice, obtained before the valuation date, were marital assets.
Built-In Capital Gains Liability of Small Minority Interest Should Be Discounted to Reflect Time Value of Money
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value and the appropriate discounts for lack of marketability and control.
Louisiana clarifies professional practice goodwill valuation
In this marital dissolution, the issue was the value of wife’s interest in her CPA practice (CPA practice) and the value of the couple’s funeral home (Gill LLC) that was operated by husband.
Estate of Jelke v. Commissioner (I)
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value, and the appropriate discounts for lack of marketability and control.
Steneken v. Steneken (II)
The question was whether it is impermissible "double counting" to use actual income for alimony purposes but a lower "normalized" income amount when valuing a closely held business for equitable distribution purposes.
Bersin v. Golonka
One of the issues in this marital dissolution was the value of husband's 1000 shares of non-voting stock in the Sanger Clinic, P.A., where he was a senior partner.
Stageberg v. Stageberg
In this marital dissolution case, the trial court determined that husband's right to contingency fees from his legal practice, obtained before the valuation date, were marital assets.
Washington v. Washington
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.
Gill v. Gill
In this marital dissolution, the issue was the value of wife’s interest in her CPA practice (CPA practice) and the value of the couple’s funeral home (Gill LLC) that was operated by husband.
Delaware block method not appropriate for marital dissolution; valuation that considers multiple factors prevails
The primary issues in this marital dissolution were whether the trial court used a proper methodology in valuing the parties’ business, International Book Import Service Inc.
“The small firm risk premium remains largely a myth”
This article is another installment in the long-running debate about whether small companies are riskier than large companies, all other things being equal.
ICBC 27th Annual National Conference
One of the most interesting presentation at the Institute of Certified Business Counselors 27th Annual National Conference ...
Kerce v. Kerce
Issue was the valuation of the parties' book import business, and the proper methodology for determining value.
Tax Court Accepts Negative Industry Risk Premium and Unique Combined Discount Matrix
The decedent, Helen Deputy, formed a family limited partnership comprised of 99% of a limited partnership interest retained by Deputy and two 0.5% general partnership interests, one held by Deputy and one held by her son.
Estate of Deputy v. Commissioner
Issue was the fair market value of a 19.99% interest of stock owned by an FLP, and court discussed negative industry risk premium and unique matrix for determining marketability discount.
Court values and distributes partner's interest in enterprise goodwill of Ernst & Young
One of the issues in this marital dissolution was the value of the husband's partnership interest in the accounting firm of Ernst & Young ("E&Y"), including his interest ...
Bankruptcy Court Indicates Strong Preference for Market Approach, Price Per Subscriber Multiple
This trial court matter involves an adversarial proceeding in bankruptcy in which the liquidating trustee asserts that USN Communications,Inc.'s ("the debtor") purchase of Connecticut Telephone and Connecticut Mobilecom (CT Tel) stock from the Hatten sellers for $68 million was a fraudulent transfer.
Bobrow v. Bobrow
One of the issues in this marital dissolution was the value of the husband's partnership interest in the accounting firm of Ernst & Young ("E&Y").
Tax Court Chooses Market Approach Over Asset Approach
The issue in this consolidated case involving the Caracci family was whether the value of the Sta-Home Health Agency Inc. (SHHA) and related entities transferred into S corporations exceeded the consideration paid.
Understanding the income valuation approach – a primer for judges
In determining the price to pay for a company, a buyer of a business ultimately looks to the return he will receive on his investment. That return might come in the form of annual dividends ...
Peltz v. Hatten
Adversarial proceeding in bankruptcy in which the liquidating trustee asserts fraudulent transfer of stock.
Marital Court Denies Discounts Based on Shareholder Fair Value Standard
The issues raised in this marital dissolution case were (1) whether the trial court erred in valuing husband's interest in Union County Florist Supplies, Inc . (Florist), the family florist ...
Court Accepts Evidence of Prior Sale Price of One-Half Interest Over Expert Valuations
One of the issues in this case was whether the trial court erred in determining that the value of Cardiz Tool and Machine (Cardiz) was $240,000 and awarding one-half of that value as marit ...
Caracci v. Commissioner (I)
The issue was whether the value of the Sta-Home Health Agency, Inc. (SHHA) and related entities transferred into S corporations exceeded the consideration paid.
Whether to mark up assets; Whether to tax affect gains
My question is in relation to a divorce case in which the main marital asset is an operating retail business. The business is organized as an S corporation and it possesses appreciated real ...