Painting Business Valued Using Market Approach
The Tennessee Court of Appeals affirmed the lower court's valuation of the parties' painting business. The husband provided the only expert testimony regarding the value of the business, and his expert used the asset, income and market approaches. The ex ...
DLOM applies to equity only
When valuing a subject on a fully invested basis under the income approach and applying a WACC model using bank borrowing rates for the debt component, do discounts for lack of marketabilit ...
Not so different after all
"reconciling the Single Period Capitalization Method with the Discounted Future Earnings Method," Kevin B. Reynolds , Business Appraisal Practice , Spring 2000, pp. 16-27. Under the income approach ...
Court Accepts Taxpayer's Expert Value Despite Taxpayer Protests
The issues in this estate tax matter were as follows: the fair market value of Frank DiSanto's (Frank) 186,177 shares (53.5%) of stock in Morganton Dyeing & Finishing Corp. (MD&F) on his date of death; and the fair market value of the MD&F stock Grace DiSanto (Grace) was entitled to inherit from Frank's estate (a minority interest) on his date of death.
In re Robert E. Mahoney, Jr. Debtor
At issue is the fair market value of 4,500 shares of Quality Systems Associates Inc.
Empirical data primer
"The Empirical Foundation for Business Valuations," Robert M. Power, Jr., and Robert B. McMunigle, The Valuation Examiner , January/February 2000, pp. 19-24. This article focuses on incorporating ...
Taxpayer Victory on FLP Recognition
On Jan. 18, 2000, Judge Orlando Garcia of the United States District Court ruled in favor of the taxpayer in the first family limited partnership case to be tried in a federal district court.
1999 in review: What we learned in a busy year
My 30 th year in the business valuation profession ( see December 1999 BVU , p.1) was an active one in terms of development in the profession. Here are some of the highlights: l 1999 was o ...
Church v. United States (I)
At issue is whether a partnership transaction was entered into for no purpose other than to reduce the taxation of Mrs. Church's estate.
Family Limited Partnership Formed Two Days Before Death Not Sham Transaction
The primary issue in this estate tax refund action was whether Stumberg Ranch Partners Ltd. was formed for a bona fide business purpose, or was a sham transaction designed to avoid estate and gift taxes.
No Gift Tax Due When Partnership Was Formed Two Days Before Death
The U.S. District Court for the Western District of Texas rejected the IRS' position that gift tax was due on the formation of a family limited partnership formed two days before the decedent's death.
Petitioners' expert accepted despite their claim of lower value
The Experts: Clifford Braly III (for taxpayers on returns) Deloitte & Touche Management Planning, Inc. (for petitioners at trial) William H. Frazier, ASA (for petitioners ...
Estate of DiSanto v. Commissioner
At issue is the fair market value of a block of 186,177 shares of MD&F stock owned by the decendent.
Petitioners' Expert Accepted Despite Their Claim of Lower Value: Marital Deduction Based on Stock Actually Inherited After Disclaimer
The issues in the estate tax matter were: the fair market value of Frank DiSanto's (Frank) 186,177 shares (53.5%) of stock in Morganton Dyeing & Finishing Corp. (MD&F) on the date of death; the fair market value of the MD&F stock Grace DiSanto (Grace) was entitled to inherit from Frank's estate (a minority interest) on her date of death; whether Grace had expectancy interest only in the stock she was entitled to inherit; and whether Frank's estate was entitled to a marital deduction based on the value of the stock he willed to Grace or based on the value of the stock she was entitled to receive after executing a disclaimer of part of her interest in the stock.
A Post-Valuation Date Redemption and a Marital Deduction
The Tax Court determined that the fair market value of stock in a fabric dying corporation.
Bristol-Myers Squibb v. Town of Wallingford
At issue is whether or not the property of Bristol-Myers Squibb Co. was overvalued.
Health care M&A activity and pricing multiples declining
The material presented here was prepared by Charles Wilhoite, ASA, CMA, CPA/ABV , of Willamette Management Associates and presented by Charles and Shannon Pratt at the National Health Care Adviso ...
Thousands of manufacturing companies to value, but the appraiser needs to assess their risks
The thousands of buyouts, divorces, estate related transactions, and other ownership changes in small to mid-size manufacturing companies provide a fertile source of engagements for business appraiser ...
1999 Guide to Business Valuations has "fair value" chapter, much more
The new 1999 Guide to Business Valuations contains more new material than any edition in several years.
IBA Conference
n The court appointed expert Darrell V. Arne, CBA, ASA, CPA, CBI Arne & Co. Albuquerque, NM Darrell emphasized that there is a demand for court-appointed experts, courts and litig ...
Moving targets: determining the fair market value of restaurants
One of the few constants about restaurant appraisal is that there is nothing constant about it. Volatility is the name of the game in the restaurant appraisal business. Concepts like theme restaur ...
Build-up vs. CAPM Method
In the Income Approach Example on page 2 of the September BV Update , you show the calculation of a discount rate using the CAPM method. I have several questions about the calculation: 1.
Valuing Intangible Assets Now Available!
Valuing intangible assets is a discipline that is critically important to business appraisers and others interested in valuing businesses and business interests. As it should, the sophistication of the business valuation profession is increasing at an exponential rate.
Broker Guilty of Fraud, but No Damages Found
Paul DeNucci agreed, for a commission, to have Wayne March and CB Commercial Real Estate Group Inc. find a buyer for his three car wash businesses.
Drawing a clear distinction between income and market approaches and methodology
The point of this column is to advocate that income approach methods be distinguished clearly from market approach valuation methods. The valuation profession has (somewhat arbitrarily) classified ...