Recent Court Ruling Regarding Excess Compensation Paid to Officer and Trustee of ESOP Company: The Need for Fairness Opinions
Ackerman, David Insights , Spring 2001 This article discusses the case of Delta Star, Inc. v. Patton , 76 F.Supp.2d 617, 1999 U.S. Dist. LEXIS 10543 (W.D. Penn. 1999), as it illustrates the ...
Estate of Hoffman v. Commissioner
At issue is the fair market value of property interests held by decedent at the time of her death.
Appraisers Apply Myriad of Valuation Techniques to Various Estate Holdings
Marcia Hoffman's (decedent) estate held a 27.5% interest in Clubside Partnership, which was family owned.
Marketability discounts frequently a big money appraisal controversy
The applicability and/or magnitude of discounts for lack of marketability often are a large, if not the largest, money issue in a disputed business valuation. Lawyers should know enough about marketability discounts to make at least a preliminary judgment about their own and the opposing expert's justification as to the applicability or lack if it, and if applicable, justification as to the magnitude.
HOWARD V. SHAY REDUX, Rabe, James G., CFA, ASA, and David Ackerman, Esq.Willamette Management Associates Insights, Spring 1999.
The Pacific Architects and Engineers (PA&E) ESOP, created in 1972, had no put option, as required in ESOPs established since 1986. The company's earnings were marginal, and the stock had never pai ...
Tax Court Considers QMDM and Restricted Stock Studies in Determining Discount for Lack of Marketability
In November 1992, the Petitioners gifted shares of St. Edward Management Co. (the "Company") common stock to their children.
Janda v. Commissioner
In November 1992, the Petitioners gifted shares of St. Edward Management Company (the "Company") common stock to their children. Each gift represented approximately 5.3% of the outstanding shares of common stock. St. Edward Management Co. owned 94.6% of the common stock of the Bank of St. Edward (the Bank), a bank located in a small agricultural community in Nebraska.
Which small stock premium?
This year in the cost of capital exhibit each month, youve added the equity risk under both the S&P 500 and the NYSE 1-2 columns. I apparently missed when you should refer to one or the ...
Other Articles
"ASA Board of Governors Rejects Task Force Consolidation Proposal; Board Approves Alternative Proposal for Joining ASA and NAIFA," ASA Newsline, December 2000, Published monthly. (800) ASA-VALU.
Does block size affect DLOM
Has anyone ever published data indicating premiums or discounts for varying ownership percentages? For instance, has anyone produced the following chart for a privately held company?
Revenue Ruling 98-21
ISSUE When is the transfer of a nonstatutory stock option (i.e., a compensatory stock option that is not subject to the provisions of § 421 of the Internal Revenue Code ) by the optionee to a family ...
Appraisal Firm Not Liable for Professional Malpractice; ESOP Trustee Must Prove Justified Reliance
This trial court matter arose as a result of prior litigation in which the trustee of the Kroy ESOP was found liable for breach of its fiduciary duty.
The value of marketability as illustrated in dot.com IPOs: May 1997-March 2000
This study is an outgrowth of the eight pre-IPO discount studies published by John D. Emory, Sr. covering 1980-1997. The complete results of this study, with exhibits and expanded text analysis ...
Yes, restricted stock studies do matter after 1990
I read the May 2000 edition of Business Valuation Update with interest. I was specifically attracted to the guest article that discussed restricted stock discount studies.
Fiduciary and Valuation Issues Arising from Eyler v. Commissioner
n FIDUCIARY AND VALUATION ISSUES ARISING FROM EYLER V. COMMISSIONER , Gould, Susan E., and Gregory K. Brown, Esq. Willamette Management Associates Insights , Spring 1999. This article is av ...
Preferred Limited Partnerships: The FLP's of Choice?
n Preferred Limited Partnerships: The FLP's of Choice? Hatcher, Milford B., Jr., and Gregory E. Kniesel . Valuation Strategies , July/August 1999, pp. 12-33. This article presents a rather ...
Restricted stock discounts decline as result of 1-year holding period
This article addresses the changes in the marketplace for restricted securities that have occurred since 1990 and the impact that those changes have had on the overall level of discounts for lack of marketability for these securities.
IBA presents sample appraisal reports
Business Appraisal Reports Library , Vols. I and II , The Institute of Business Appraisers, Inc. , P.O. Box 17410, Plantation, FL 33318, (800) 299-4130, members: $499 (CD only-$399), nonmember: $59 ...
Other Articles - March 2000
"Assessing the Impact of Synergy on Value," Mark L. Zyla, CPA Expert, Fall 1999, pp. 5-7. "Auto Dealer Consolidation: The Impact on Valuations," Timothy W. York and James L. "Butch" Williams ...
William I Koch v. Koch Industries, Inc.
At issue is misrepresentation and omission of material facts during stock purchase negotiation, including evidentiary issues.
1999 in review: What we learned in a busy year
My 30 th year in the business valuation profession ( see December 1999 BVU , p.1) was an active one in terms of development in the profession. Here are some of the highlights: l 1999 was o ...
Parrott v. Coopers & Lybrand, L.L.P.
At issue is the valuation of employee's stock after termination and breach of fiduciary duty by the majority shareholder.
Accountants for Company Not Liable to Terminated Employee
This accountant malpractice action arose as a result of the plaintiff's efforts to obtain a higher price for his 40,500 shares of stock of Pasadena Capital Corp., an investment advisor firm.
New measures of risk that really work!*
I've often said that the greatest challenge for skilled business appraisers is to quantify risk and translate the results into a required rate of return (discount rate). The latest work of Roger Gra ...
Tax Court Holds Sales Transactions Not Indicative of FMV
This issue in this estate tax matter was the fair market value on Sept. 7, 1993, of decedent's 366,385 shares of common stock of Hastings Books, Music & Video Inc.