Delaware Chancery Court Cites Differences in Cash-Flow Assumptions as Cause for Large Discrepancy in Value
In this appraisal action to determine fair value, petitioner Ramcell Inc. exercised its appraisal rights in asking for a statutory appraisal of the value of its 155 shares of Jackson Cellular Telephone Co. Inc. The respondent, Alltel Corp. (dba Verizon Wireless), had converted the 155 shares at a value of $2,963 per share. “Respondent’s expert opines that Jackson’s per-share value was $5,690.92 at the time of the merger. Petitioner’s expert has offered two appraisal ranges, opining that, at the high end, Jackson’s per-share value was $36,016 on the merger date.” Both parties agreed that the DCF method should be the sole method for determining the value. The Delaware Chancery Court, using that method, determined the fair value of each share at $11,464.57. The court noted that the disparity in the parties’ valuations was due to disagreements as to the inputs to the DCF model and how they should be calculated.
Ramcell, Inc. v. Alltel Corp.
In this appraisal action to determine fair value, petitioner Ramcell Inc. exercised its appraisal rights in asking for a statutory appraisal of the value of its 155 shares of Jackson Cellular Telephone Co. Inc. The respondent, Alltel Corp. (dba Verizon Wireless), had converted the 155 shares at a value of $2,963 per share. “Respondent’s expert opines that Jackson’s per-share value was $5,690.92 at the time of the merger. Petitioner’s expert has offered two appraisal ranges, opining that, at the high end, Jackson’s per-share value was $36,016 on the merger date.” Both parties agreed that the DCF method should be the sole method for determining the value. The Delaware Chancery Court, using that method, determined the fair value of each share at $11,464.57. The court noted that the disparity in the parties’ valuations was due to disagreements as to the inputs to the DCF model and how they should be calculated.
Radiologix, Inc. v. Radiology & Nuclear Medicine, LLC
Court admits expert calculation that determines one set of damages for two related plaintiff entities and that relies on data from nonparty parent entity; court finds calculation need not precisely track corporate structure to meet Daubert requirements.
Under Daubert, Damages Calculation Need Not Replicate Corporate Structure
Court admits expert calculation that determines one set of damages for two related plaintiff entities and that relies on data from nonparty parent entity; court finds calculation need not precisely track corporate structure to meet Daubert requirements.
Green v. Polyester Fibers, LLC
Mississippi law requires discounting to present value, court says; court affirms its earlier exclusion of expert’s future lost compensation forecast because calculation was based on “total offset” method, which is disfavored in Mississippi.
Wrong Methodology Gets Lost Compensation Forecast Excluded
Mississippi law requires discounting to present value, court says; court affirms its earlier exclusion of expert’s future lost compensation forecast because calculation was based on “total offset” method, which is disfavored in Mississippi.
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?
Expert Struck in Mid-Damages Calculation
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In re Marriage of Haefele
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Diesel Machinery Inc. v. B.R. Lee Industries, Inc.
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Accounting Expert’s Lost Profits Analysis Accepted Over Economist’s Estimate
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Honeywell International Inc., et al. v. Air Products & Chemicals, Inc.
The Delaware Court of Chancery calculated lost profits arising from the breach of a contract.
Spouse not entitled to future income
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Eliz v. Eliz
The issue in this case was whether the trial court erred in valuing husband's cardiology practice.
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A lawyer's guide to asset-based approaches to business valuation
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Estate of Hoffman v. Commissioner
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Appraisers Apply Myriad of Valuation Techniques to Various Estate Holdings
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Milteer v. Milteer
At issue is the valuation of wife's nurses license.
Marital property includes nursing license and pensions
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In re the Marriage of Antuna
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No double dipping where child support, maintenance, and business value based on same income stream,
Several issues were raised in this marital dissolution appeal related to the valuation of wife's medical practice.
Lost profit damages analysis offers a natural extension for business appraiser skills
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Conduct valuations with guiding fundamental principles
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Yes, you can calculate precisely the present value of a growing annuity
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