In re Mercury Companies, Inc. (II)
On remand, Bankruptcy Court determines sale of plaintiff’s subsidiaries to defendants yielded “reasonably equivalent value” when viewed from objective creditor’s perspective, under FMV standard and without considering debtor’s subjective needs or beliefs.
Chancery Adopts Merger Price Sans Cost Savings Reduction
Chancery agrees with company expert’s reliance on merger price as best estimate of fair value of company where DCF and comparable companies analyses lack reliable data, but court rejects downward adjustment for purported cost savings related to merger.
Financial Advisor’s ‘Real Client Was the Deal,’ Says Chancery
Chancery says “dropdown” of assets from parent to master limited partnership resulted in overpayment; transaction was enabled by financial advisor that took orders from parent regardless of whether opinion “made sense as a matter of valuation theory.”
Tri Cnty. Wholesale Distribs. v. Labatt USA Operating Co. LLC
Court uses hybrid approach to quantify diminished value in business resulting from franchisees’ loss of beer brands; it means determining FMV of franchise contracts by way of DCF and adding loss in value of other assets directly related to loss of brands.
Merlin Partners LP v. AutoInfo, Inc.
Chancery agrees with company expert’s reliance on merger price as best estimate of fair value of company where DCF and comparable companies analyses lack reliable data, but court rejects downward adjustment for purported cost savings related to merger.
In re El Paso Pipeline Partners, L.P. Derivative Litig.
Chancery says “dropdown” of assets from parent to master limited partnership resulted in overpayment; transaction was enabled by financial advisor that took orders from parent regardless of whether opinion “made sense as a matter of valuation theory.”
Use of Asset-Level Deductions Hinges on Business Strategy
State’s high court strikes down district court’s fair value determination, finding reliance on prior law prohibiting use of deductions was misguided where company pursued strategy of selling off real estate and other assets at time of triggering event.
Utah Resources International, Inc. v. Mark Technologies Corp.
State’s high court strikes down district court’s fair value determination, finding reliance on prior law prohibiting use of deductions was misguided where company pursued strategy of selling off real estate and other assets at time of triggering event.
Court Finds Facts Back Expert’s Value-Per-Subscriber Metric
Court finds trust failed to prove insolvency; its expert’s use of DCF alone was inappropriate where there were no cash flow projections untainted by fraud, but competing expert’s market-based approach and value per subscriber analysis were solid.
Adelphia Recovery Trust v. FPL Group, Inc. (In re Adelphia Corp.)
Court finds trust failed to prove insolvency; its expert’s use of DCF alone was inappropriate where there were no cash flow projections untainted by fraud, but competing expert’s market-based approach and value per subscriber analysis were solid.
Developing Discount and Cap Rates in a Troubled Economy: New and Emerging Views on Old Issues
Developing Discount & Cap Rates in a Troubled Economy: New and Emerging Views on Old Issues Teleconference Handbook April 30, 2009 Panelists: Ron Seigneur, MBA, CPA/ABV/CFF, CVA, Don DeGrazia, CPA/ABV/CFF, and Stacy Preston Collins, CPA/ABV, CFF ...
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.
Montgomery Cellular Holding Co., Inc. v. Dobler
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.
Tax Court, Frustrated by Inadequate Data, Inscrutable Analyses, Bases Reasonable Compensation on RMA Ratios
The issue in this case was the reasonableness of compensation paid to the shareholder and primary officer of Brewer Quality Homes Inc. (Brewer).
Brewer Quality Homes, Inc. v. Commissioner (I)
Issue is the extent to which amounts that petitioner paid to shareholder-officer are deductible as reasonable compensation under section 162(a)(1).
Valuation of high-tech companies requires modification of standard approaches
The valuation of early stage technology companies ("high-tech") is significantly more challenging than valuing more mature businesses in other industries. These companies are commonly characterized by ...
Using WACC in Tax Court
Your manual, Guide to Business Valuations , paragraph 506.11, Calculation of the Weighted Average Cost of Capital, discusses the need to use a WACC under a debt-free valuation method. This ...
Financial Statement analysis and Business Valuation for the Practical Lawyer
n FINANCIAL STATEMENT ANALYSIS AND BUSINESS VALUATION FOR THE PRACTICAL LAWYER , Dickie, Robert B. American Bar Association, Section of Business Law , P.O. Box 10892, Chicago, Ill. 60610-0892 ...
Debt and Equity Weightings in WACC
Evans introduces the formula below to simplify the iteration process when employing the single period capitalization method. The formula solves for the fair market value of equity based on independent factors that are generally known in advance by the valuation professional.
Ibbotson's new Web site allows "per inquiry" fees
Ibbotson Associates , 225 North Michigan Avenue, Suite 700, Chicago IL 60601, (800) 758-3557. Industry reports are $50, Beta and Tax reports are $10. Members of AICPA, ASA, NACVA , and IBA receive ...