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 [...]
SC Supreme Court persuaded regarding use of normalization adjustments
First the trial court found that two shareholders in a South Carolina medical supply company had been diverting funds to pay themselves excessive salaries. Next, it ordered the shareholders to buy-out the dissenting owners and appointed a business appraiser to determine statutory fair value. In his engagement letter, the appraiser agreed to comply by the [...]
Statutory “fair value” guide now available for business and family lawyers
The 2010 update of BVR’s Guide to Fair Value in Shareholder Dissent, Oppression and Marital Dissolution is now available. In addition to the print copy, the guide provides additional online access that includes real time updates to recently published court opinions and case abstracts, new articles, conference presentations, podcasts, news and blog feeds. The Guide [...]
Delaware Chancery opines on many of the most litigated business valuation issues
In the latest “must read” statutory fair value appraisal from the Delaware Chancery Court, the decision (by V.C. Strine) tackles such critical valuation topics as deference to the market price, determination of the terminal growth rate, historic versus supply-side equity risk premium (ERP), and selection of appropriate beta. All of these issues have been litigated [...]
Value of tiered minority ownership interests causes Tax Court battles
Discounts for lack of marketability and adjustments for minority interests are tough enough, but when the when limited partnership structures get complicated, with multiple ownership “tiers,” these adjustments can take on a life of their own. On May 27, William Frazier (Howard Frazier Barker Elliot) and John Porter (Baker Botts) will address these valuation challenges in “Valuing [...]
Delaware shareholder dissent case disputes “circular logic” when valuing the business
The Delaware Chancery Court found the majority owners of a large, privately owned alcohol distributor authorized a merger to “freeze out” a 15% minority shareholder by using a process that was “anything but fair.” A fairness opinion, obtained a week prior to the merger, was an “afterthought,” the court noted, “pure window-dressing” to justify the [...]
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