Using financial experts in Delaware Chancery Court
To keep up with this important precedent from the “Supreme Court” of corporation law, don’t miss Delaware Chancery Roundtable: Views from the Bench, Council & Witness Stand. In this special two-hour webinar, Neil Beaton (Grant Thornton) and Stephen C. Norman (Potter Anderson & Corroon) will ask Vice Chancellor Donald F. Parsons Jr. what the Delaware Court of Chancery expects [...]
Must an LLC turn over the valuation records of its subsidiary?
The Delaware Chancery Court just provided a good checklist of documents to request and require in a “books and record” action by the controlling member of a limited liability company (LLC), particularly when the purpose of the request is to ascertain the value of the member’s holdings, not just in the LLC but in its [...]
Litigators should pay particular attention to brand valuation in commercial cases
James Gregory (CoreBrand, LLC) wrote in BOARDMEMBER.com ten reasons why brand valuation is so significant in many lost profits, damages, dissenting shareholder, and other commercial law matters. Brand valuation: legitimizes investment provides an objective measure of effort creates accountability aligns leadership identifies growth opportunities predicts market shifts identifies competitive opportunity and advantage informs M&A or [...]
GT publishes insights into three Delaware Chancery Court opinions
Drew Voth (Grant Thornton) wrote in the recent Business Valuation Monitor: When…setting valuation law precedent (and reminding us of preexisting precedent), no venue is more important than the Delaware Chancery Court. The sheer volume of companies incorporated in Delaware makes the state a natural venue for the majority of corporate shareholder value actions, and the [...]
DCF (plus tax-affecting) is more appropriate for partnership valuation than cap/earnings approach, says post-Bernier court
Back in 2007, the Bernier decision by the Supreme Judicial Court of Massachusetts was among the first to analyze the “bedeviling” issue of tax-affecting the income stream of a closely held corporation in divorce. (See BVWire #60-2) Recently—the same panel delivered an expedited opinion concerning the present value a husband’s interest in a highly lucrative [...]
Recent “epic” New York court decision “must” reading for commercial lawyers
Peter Mahler (Farrell Fritz) just blogged about a major NY court decision “in a high stakes fair value case in which DLOM and BIG discounts took center stage.” In his article “Court Rejects Marketability Discount, Applies “Murphy Discount” for Built-In Gains, in Determining Fair Value of Shares in Real Estate Holding Corporations” Mahler writes: An [...]
Even Ibbotson can be challenged by aggressive defense counsel
Two related cases (Metro Tech Corp. v. TUV Rheinland of N.A., 2010 WL 4117123 (D. Puerto Rico.)(Oct. 18, 2010); and Metro Tech Corp. v. TUV Rheinland of N.A., 2010 WL 4117115 (D. Puerto Rico.)(Oct. 18, 2010)) show how far opposing counsel will go to discredit the testimony of a financial expert. In this case, the [...]
Which kind of expert succeeds in economic damages cases?
Not many published court opinions give meaningful guidance on determining the discount rate in economic damages case (see BVWire #92-5). A new decision concerning lost profits for the breach of a franchise lease finds the plaintiff’s BV analyst going against a real estate appraiser, with the win going to—wait for it . . . the [...]
New case digests added to BVLaw
Metro Tech Corp. v. TUV Rheinland of N.A., 2010 WL 4117123 (D. Puerto Rico.)(Oct. 18, 2010); and Metro Tech Corp. v. TUV Rheinland of N.A., 2010 WL 4117115 (D. Puerto Rico.)(Oct. 18, 2010) Court limits damages to breach of contract to those that can be ascertained with reasonable certainty, and qualifies first-time lost profits plaintiff’s [...]
More evidence that certified business appraisers make better experts
R&R International v. Manzen, LLC, 2010 WL 3605234 (S.D. Fla.)(Sept. 12, 2010) There’s been a lot of attention focused on the intangible asset valuation issues in the Uniloc decision last week. But, another recent case highlights some major flaws in business valuation testimony presented by an investment banker–an expert witness with extensive industry knowledge, but who [...]
Share your thoughts..