Unequal Distribution of Family Business Stock Requires Discounts
Trial court abused its discretion when it assigned to wife stock in closely held company that made her a minority shareholder and when it failed to value the asset at issue; because the in-kind distribution left her with illiquid assets and no control ove ...
Tutunikov v. Markov
In dissenting shareholder action, appellate court finds trial court had discretion to dismiss valuations from parties’ experts as “prejudiced” and draw on a third-party investor proposal for a “more realistic value” of the subject company; it also affirms ...
Intrinsic Value Review Precludes Inclusion of Fractional Discounts
The appellate court finds that, performing the requisite intrinsic value review, the circuit court properly declined to include in its analysis any discounts the husband’s expert proposed to account for his fractional interest in companies owning hotels ...
McCulloch v. McCulloch
Trial court abused its discretion when it assigned to wife stock in closely held company that made her a minority shareholder and when it failed to value the asset at issue; because the in-kind distribution left her with illiquid assets and no control ove ...
Patel v. Patel
The appellate court finds that, performing the requisite intrinsic value review, the circuit court properly declined to include in its analysis any discounts the husband’s expert proposed to account for his fractional interest in companies owning hotels ...
Barth v. Barth
Appellate court affirms “sizeable” discounts for real estate development companies, including ones for bulk sale and carrying costs.
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.
Shuck v. Shuck
Nebraska appellate court precludes discounts for embedded capital gains tax under the asset approach, confirms tax “adjustments” to the cash flows of a business under the income approach, and affirms that applications of minority and marketability discoun ...
In re Marriage of Williams
Montana high court rejects 35% minority discount to husband’s half interest in a closely held, family business, which he owned with his father and had equal say over operations, management, and application of funds.
Drumheller v. Drumheller
Divorce court disallows minority discounts in valuation of husband’s 10% interest in printing company and his 33% interest in real estate holding company.
Court Determines Value of Cashless Stock Options; Illusory Dividend Not Deducted From FMV
In this contract dispute, the principal valuation issue was the value of stock options that Colmen Capital Advisors Inc. (Colmen), had received for 20% of the common stock in Polpart Placements Inc. (Polpart) and Polar Plastics Inc. (PPI) in exchange for Colmen's turnaround work related to these and affiliated companies.
Yet Again, Delaware Looks to DCF in Appraisal Action
PNC Financial Services Group Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding’s subsidiary, PFPC Worldwide Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.
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).
Valuation Upheld Against Party That Fails to Use Independent Valuation Sources
Verizon Inc. had offered to buy MCHC’s majority holder, Palmer Wireless Holdings (Palmer), if Verizon’s initial public offering was successful and if Palmer could acquire 100% of the stock in all of the companies it held.
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.
Federal Court’s Declaring Valuation Date and Methodology Does Not Interfere With State Probate
The issue in this case was whether a federal district court could issue a declaratory judgment deciding the meaning of the agreement without interfering with state probate proceedings, and thereby negating federal subject matter jurisdiction.
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).
Andaloro v. PFPC Worldwide, Inc.
PNC Financial Services Group, Inc. (PNC), the parent of PFPC Holding Corp. (Holding), had planned to take Holding's subsidiary, PFPC Worldwide, Inc. (PFPC), public via an initial public offering (IPO), but the opportunity did not arise.
Montgomery Cellular Holding Co., Inc. v. Dobler
Verizon Inc. had offered to buy MCHC’s majority holder, Palmer Wireless Holdings (Palmer), if Verizon’s initial public offering was successful and if Palmer could acquire 100% of the stock in all of the companies it held.