Court approves expert’s use of “rules of thumb”
Most courts have expected expert witnesses to provide documents “comparables” when calculating the value of a business in dispute. So it’s noteworthy that a source which averages “rules of thumb” multiples by industry has just been accepted in a recent California divorce. In the case, a joint expert valued the husband’s physical therapy practice [...]
New digests and court documents recently added to BVLaw
Here’s a sampling of new cases where issues of business valuation, damages calculations, or other analyses by financial experts and business appraisers was crucial to the outcome. The digests and court opinions of all such cases are all available at BVLaw. In re Southern Peru Copper Corp., 2011 WL 4907799 (Del. Ch.)(Oct. 15, 2011) Delaware [...]
A sampling of recent case digests added to BVLaw
These are a sampling of new cases digested for BVLaw. These are cases where calculations of business value were essential to appellate level decision. Keil v. Keil, 2011 WL 2150009 (N.Y.A.D. 3 Dept.)(June 2, 2011) Appellate court finds “key man” discount duplicative when trial court already adopted a value that accounted for the business’s dependency [...]
Gallagher case tops list of free downloads
BVR now offers over 100 Free Resources—including articles, professional standards, landmark case law, and more—for the benefit of the larger valuation community. Just last month, for example, a record-setting 436 users downloaded the new Gallagher v. Commissioner decision, and nearly 80 looked at Examples of Factors Implementing Personal Goodwill in Cases. The 2011 update to [...]
BVLaw’s legal editor comments on leap in business valuation litigation decisions this year
BVLaw’s own Sherrye Henry comments that the number of material legal cases decided on matters of business valuation has been increasing dramatically—anecdotally as much as 50% over a year ago. Partially, the increase has occurred because valuation issues are considered in more areas of the bar. So, “I attribute some of the increase in valuation cases [...]
Sample new case abstracts added to BVLaw
Now available on BVLaw: Palmerino v. Palmerino, 2011 WL 1450359 (Mass. App. Ct.)(April 15, 2011)(unpub.) Massachusetts court precludes discounts in valuing marital business in divorce, and says that while income approach is preferred, net asset value may be appropriate in the absence of determinable market value. Experts: David Gannett (joint expert); Felix Betro (husband’s expert) Judge: [...]
Recently added to BVLaw valuation case law database
Enpat, Inc. v. Budnic, 2011 WL 768092 (M.D. Fla.)(Feb. 28, 2011) Federal court denies plaintiff’s request to pro-rate past patent infringement damages from actual prior licenses without additional evidence that the parties’ would have used a similar pro-ration during hypothetical negotiations. Experts: none Judge: Fawsett State/Jurisdiction: federal Court: U.S. district court, Florida Type [...]
New cases added to Business Valuation Law
These new cases and others are being added to the Business Valuation Law database this week: Wilson v. Wilson, 2010 WL 4723461 (W. Va.)(Sept. 21, 2010) West Virginia Supreme Court finds that construction management fees, conditioned on completion of a project, are analogous to attorney contingency fee contracts and subject to same rules of equitable [...]
Redundancy in DLOMs may violate Daubert
Nancy Fannon (Fannon Valuation Group) recently told BVLaw Alert that “Dr. Robert Comment (Johns Hopkins University – Carey Business School) has written what I think is an important perspective regarding redundancy that exists in the large DLOM adjustments many appraisers take in their valuations.” The abstract from his paper “Business Valuation, DLOM and Daubert: The [...]
BV & Bankruptcy Case Law Compendium to publish in October
We’ve just announced plans to publish a new legal resource on CD. BVR Business Valuation & Bankruptcy Compendium: Case Law and Analysis, slated for October 2010 publication, will contains over 100 fully indexed and searchable court case abstracts and full text opinions for bankruptcy cases involving challenges over the valuation of business assets. The collection, [...]
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