BV News and Trends May 2024
A monthly roundup of key developments of interest to business valuation experts.
Valuation to Maximize Client Engagement and Value
This transcript focuses on key issues involved in a properly executed and planned valuation and how such a process can maximize client engagement, value, and control.
Donnelly v. ProPharma Grp. Topco LLC
The plaintiff sued for breach of contracts relating to ProPharma’s offer to have Donnelly join the board in 2016 and for not paying him for his incentive equity shares, implemented in 2017, at fair market value. Each side engaged an experienced business valuation expert to opine as to the fair market value of the equity shares. Each side now moved to exclude the testimony of the other side’s expert. The U.S. District Court for the District of Delaware denied the motions of both sides and allowed both experts to testify.
In a Breach of Contract Suit, the U.S. District Court Denies Motions to Exclude Valuation Experts
The plaintiff sued for breach of contracts relating to ProPharma’s offer to have Donnelly join the board in 2016 and for not paying him for his incentive equity shares, implemented in 2017, at fair market value. Each side engaged an experienced business valuation expert to opine as to the fair market value of the equity shares. Each side now moved to exclude the testimony of the other side’s expert. The U.S. District Court for the District of Delaware denied the motions of both sides and allowed both experts to testify.
Alabama Appeals Court Affirms Calculation of Value Is Admissible and Lets Rohling Stand
In divorce case, Alabama appeals court upholds trial court’s admission of calculation of value from qualified expert for medical practice; appeals court agrees with lower court that objections to methodology go toward weight and expert’s credibility; court lets earlier Rohling decision stand.
Horne-Ballard v. Ballard
In divorce case, Alabama appeals court upholds trial court’s admission of calculation of value from qualified expert for medical practice; appeals court agrees with lower court that objections to methodology go toward weight and expert’s credibility; court lets earlier Rohling decision stand.
Court Trusts Process to Test Expert’s Calculation of Value
Calculation reports periodically become a point of contention in litigation in trial and appeals courts. Courts have responded in different ways to questions about their usefulness and reliability. A recent case explores the issue of whether expert testimony based on a calculation of value is admissible under Daubert. Prior to marriage, the husband founded a company that marketed and sold Steel Seal, a car repair product that sealed blown head gaskets. The company ...
Hipple v. SCIX, LLC
Trial court finds plaintiff expert’s testimony based on a calculation of value instead of a full appraisal is admissible under Daubert because it is a form of engagements approved by the AICPA and the expert explained his methodology and assumptions.
Kumho broadens gatekeepers' criteria to evaluate experts
The 1993 Daubert decision, 509 U.S. 579 (1993), articulated the duty of the trial court to make a threshold determination of the reliability of expert testimony offered under FRE 702, and set fort ...
Business valuation: a top ten list for attorneys
This article was originally published in BizVal.Com, a monthly newsletter published by Mercer Capital. We have reprinted it here because it provides a good checklist for attorneys who employ business ...
The 1999/2000 Medical Practice Valuation Guidebook: Including the Influence of Managed Care
In addition to raising the bar on medical practice valuation, Mark Dietrich has written a text on physician practice management that is really three books in one.