Courts Decry Expert’s Failure to Explore Different Ways to Develop FMV
Appeals court affirms trial court’s valuation of medical practices based on buyout provisions where wife’s expert made no attempt to ascertain businesses’ FMV by any other valuation method.
Court Questions Idea of Goodwill in Solo Practice Valuation
Appeals court says distinction between professional goodwill and future earnings capacity “evanesces” when valuing solo professional practice; trial court erred in adopting value based on guideline transaction method that considered professional goodwill.
Murky Goodwill Testimony Makes Partner Agreement Best Indicator of Value
Trial court was justified in disregarding any commercial goodwill in husband’s interest in a professional practice and relying on partnership agreement, Texas appeals court finds, where goodwill is not accessible and expert testimony as to its existence a ...
Burstein v. Burstein
Appeals court affirms trial court’s valuation of medical practices based on buyout provisions where wife’s expert made no attempt to ascertain businesses’ FMV by any other valuation method.
Expert’s Valuation Method Precludes Improper Inclusion of Goodwill
In using the capitalization of earnings method to value husband’s medical practice, the wife’s expert did not improperly include personal goodwill, the appellate court finds; the valuation rested on actual earnings with some adjustment for reasonable comp ...
Sharp v. Sharp
In using the capitalization of earnings method to value husband’s medical practice, the wife’s expert did not improperly include personal goodwill, the appellate court finds; the valuation rested on actual earnings with some adjustment for reasonable comp ...
Business Valuation Cases in Brief
Business Valuation Cases in Brief by John J. Stockdale, Jr., JD Estate Valuations In the Estate of Farnam v. CIR, 130 T.C. No. 2 (February 4, 2008), the U.S. Tax Court concluded that loans made to a family business may not be aggregated with equity interests in that business in order to satisfy the 50% ‘‘interest’’ requirement needed to qualify for the family-owned business tax exemption. The court con- cluded that interest as used in ...
Business Valuation Cases in Brief
A review of cases that present issues of interest within the business valuation community.
Art Is Like Any Other Business: Value Must Include Owner’s Reasonable Salary
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Productivity Adjustment Key for Private-Practice Valuations
Determination of reasonable compensation in valuation of private practice (dental) in dissolution case ...
Failure to distinguish between personal and professional goodwill leads to affirmance
One of the issues in this marital dissolution was the value of husband’s dental practice.
Judge must select valuation based on most current information available
One of the issues in this marital dissolution was the value of Mid-Atlantic Resources stock, which the parties initially had stipulated was worth $78,000.
Court may reopen case to obtain clarifications as to expert’s valuation
In this marital dissolution, the trial court adopted the valuation of husband’s expert, Ronald Brien, who valued the parties’ plumbing business at $45,000.
In re Marriage of Haefele
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Failure to use goodwill in valuing a medical practice upheld but reluctantly
A major point of contention between the parties in this marital dissolution was the value of husband's radiology practice.
More thorough analysis wins the day
In this marital dissolution case, the primary valuation issue was how much husband’s medical practice had increased in value.
Slightest support for court’s valuation renders it unassailable
One of the issues in this marital dissolution was the value of husband’s sole proprietorship interest in Sun Shak Tans, a tanning salon.
Adoption of stale valuation date is abuse of discretion
One of the issues in this marital dissolution was the appropriate valuation date for valuing the couples’ business, Golight Inc., which had won a patent infringement suit against Walmart Stores Inc.
Rejected option agreement that is part of bigger deal does not determine value
One of the issues in this marital dissolution was the value of husband’s bar, Knicker’s Saloon.
Separation date is proper valuation date
In this marital dissolution, the issue was whether the trial court abused its discretion in selecting the parties’ separation date as the valuation date.
Combining valuation methods is not erroneous
In determining whether a legal malpractice claim involving a marital dissolution action would have succeeded on appeal, the district court had ruled that the trial court’s valuation of husband’s business was not erroneous, and husband appealed.
Sufficient evidence must support valuation date
In this marital dissolution case, the issue was the appropriate valuation date for the parties’ 85 operating entities, which, in turn, owned more than 100 residential rental real estate properties.
Marketability discount may be applied where there is no impending sale but is within court’s discretion
The valuation issues in this marital dissolution were whether a discount for lack of marketability should have been applied to husband’s minority interests in two medical-practice businesses, and whether a buy-sell provision in a third business was determinative of that business's fair market value.