Alexander v. Alexander
In divorce case, appellate court upholds valuation of a small agriculture-related company based on the capitalization of net income approach; record supports court-appointed expert’s capitalization rate, including his selection of the supply-side equity r ...
DCF Valuation Meant to Underpin Fairness Opinion Upends It
Court agrees with plaintiff shareholder that the proposed merger was the result of a defective sale process that included the company board’s reliance on a weak fairness opinion with valuations that were “poor indicators” of the company’s value; the sale ...
Koehler v. Netspend Holdings Inc.
Court agrees with plaintiff shareholder that the proposed merger was the result of a defective sale process that included the company board’s reliance on a weak fairness opinion with valuations that were “poor indicators” of the company’s value; the sale ...
Estate of Koons v. Commissioner
In determining the fair market value of a revocable trust’s interest in an LLC, the Tax Court adopts the IRS expert’s marketability discount and valuation; he rightly assumed it was reasonably foreseeable at the time of the decedent’s death that the trust ...
Top Ten Issues to Note When Selecting COC Data in Volatile Times
Deriving a defensible cost of capital (COC) for the capital asset pricing method (CAPM), modified CAPM, or the build-up method is frequently the most contentious issue in litigation involving the valuation of private companies or economic damages. Moreove ...
ASARCO v. Americas Mining Corp. (II)
Federal district court considers whether control premium can be an element of damages in fraudulent transfer/breach of fiduciary duties in bankruptcy case.
ASARCO v. Americas Mining Corp. (I)
Fraudulent transfer claims in bankruptcy turn on multi-million dollar valuation of controlling interest in foreign mining company.
Estate of Cyril Magnin v. Commissioner (II)
*This Memorandum Opinion supplements our Memorandum Opinion in Estate of Magnin v. Commissioner, T.C. Memo. 1996-25, revd. and remanded 184 F.3d 1074 (9th Cir. 1999). T.C. Memo. 2001-31 UNITED STATES TAX COURT ESTATE OF CYRIL I. MAGNIN, DECEASED, DONALD ISAAC MAGNIN, EXECUTOR, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent* Docket No. 24883-92. Filed February 12, 2001. Stuart S. Lipton, Frederick J. Adam, Jerome B. Falk, Jr., Douglas A. Winthrop, and Denise M. Riley, for ...
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.
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.
Control Premium Not Needed for DCF Analysis Using Gordon Growth Model
One of the issues was whether the board’s financial advisor, Credit Suisse First Boston (First Boston), correctly excluded a control premium in its assessment of the company’s value and, thus, whether the board failed to reasonably consider the value of all relevant alternatives.