Kinsey v. Cendant Corp.
NY court clarifies measure of lost profits for stock options in contract versus conversion cases.
Business Valuation Cases in Brief
A review of cases that present issues of interest within the business valuation community.
Analysts Not Required to Predict the Future—Only to Probe Present Facts
In assessing fair value and adequate consideration of ESOP transaction, court considers whether appraiser should have reasonable foreseen future events affecting stock and company value.
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.
11th Circuit Disregards Changeable Buy-Sell Agreement, but Insurance Proceeds Used for Buyout Not Included in Value
As reported in the August 2004 issue of Business Valuation Update, the issue in this estate tax case was the value of George Blount’s (decedent’s) interest in a closely held company on the date of his death.
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).
Appropriateness of Accounting Principles and Valuation Must Go to Trial
One of the issues in this shareholder dispute was whether stock was correctly valued pursuant to a stock purchase agreement.
Estate of Blount v. Commissioner (II)
The issue in this estate tax case was the value of George Blount’s (decedent’s) interest in a closely held company on the date of his death.
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.
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).
Stock restriction agreement is not determinative of value for equitable distribution
One of the issues in this marital dissolution was the value of husband’s 1000 shares of nonvoting stock in the Sanger Clinic, P.A., where he was a senior partner.
Keach v. U.S. Trust Co.
In assessing fair value and adequate consideration of ESOP transaction, Court considers whether appraiser should have reasonable foreseen future events effecting stock and company value.
Colmen Capital Advisors, Inc. v. Polar Plastics, Inc.
In this contract dispute, the principal valuation issue was the value of stock options that Colmen Capital Advisors Inc. had received for 20% of the common stock in Polpart Placements Inc. and Polar Plastics Inc. in exchange for Colmen's turnaround work related to these and affiliated companies.
K-O Enterprises, Inc. v. O'Brien
One of the issues in this shareholder dispute was whether stock was correctly valued pursuant to a stock purchase agreement.
Morton v. Morton
In this marital dissolution, the issue was whether the trial court abused its discretion in selecting the parties' separation date as the valuation date.
Bersin v. Golonka
One of the issues in this marital dissolution was the value of husband's 1000 shares of non-voting stock in the Sanger Clinic, P.A., where he was a senior partner.
Weinberg v. Commissioner: Good law, bad economics, or both?
Lawyers often comment that good cases make bad law. As an economist, I have a similar comment: good law often comes from bad economics. By definition, a judge’s opinion is good law.
Expert dubbed "unpersuasive" rebuts Judge Laro's rejection
I have reviewed the write up of Estate of Kaufman in the May issue of your newsletter, and I am very concerned that it unfairly portrays me as having not done a credible valuation because it takes Judge Laro's criticisms of my report at face value.
Motion to Exclude Banker Using DCF Method Denied
Participants in CommutAir’s Employee Stock Ownership Plan brought this ESOP litigation alleging numerous claims of breach of fiduciary duty by the trustee and others involved in the ESOP.
“The small firm risk premium remains largely a myth”
This article is another installment in the long-running debate about whether small companies are riskier than large companies, all other things being equal.
ASA International Appraisal Conference: Winds of Change Part 2 of 2
The ASA International Appraisal Conference held at the Marriott Waterside Hotel & Marina on July 14-16 in Tampa, Florida was anything but business as usual this year.
Tax Court displeased with all experts’ DLOC and DLOM analyses
The primary issues in this gift tax case were the appropriate discounts for lack of control and lack of marketability to apply to gifted and sold interests of a family limited partnership.
Redemptions of ESOP Shares Were Deductible Dividends
The question of whether the distributions to plan participants are deductible dividends depends on who owned the convertible preferred stock when the redemptions took place.
Damages Award on Federal Securities Fraud Claim Not Speculative
Peter Camplin started Sea Dog Brewing Co. in 1992.
Court Uses Raw Data From Bajaj Study to Determine DLOM
The only issue in this case was the fair market value of gifted family limited partnership (FLP) interests.