Category Archives: Valuations

‘Dramatic’ Valuation Adjustment Justifies Equity Committee

May 19, 2017 | Court Rulings, Valuations

In re Horsehead Holding Corp., 2016 Bankr. LEXIS 3187 (May 2, 2016) Shareholders in a bankrupt company rarely get to form an equity committee that represents their interests during the reorganization proceedings. But, in an extraordinary bankruptcy case, the court, after hearing shareholders express concern over the valuations of the company, ordered the formation of  Continue Reading »

Lost Profits or Lost Value of the Business?

May 8, 2017 | Business Plans, Valuations

Let’s say that Maine Delicious Lobster Company loses its contract to deliver lobster for its primary customer, Good Maine Sandwich Company. Furthermore, the contract loss was due to an alleged breach by Good Maine Sandwich Company. The lobster company sues the sandwich company for damages. Or wait, should Good Maine Sandwich Company sue for loss of business value?  Continue Reading »

Daubert: It’s About Reliability of Testimony, Not Power of Persuasion

May 5, 2017 | Court Rulings, Valuations

Post-Confirmation Comm. for Small Loans, Inc. v. Martin, 2016 U.S. Dist. LEXIS 44270 (March 31, 2016) A recent ruling in a complex bankruptcy case teaches that Daubert can accommodate differing views on determining solvency for multiple debtor entities. Consolidated vs. stand-alone basis A group of related family-run consumer lending and retail businesses filed for Chapter  Continue Reading »

The Ins and Outs of Deducting Legal Expenses

May 1, 2017 | Court Rulings, IRS Regulation, Tax Planning, Tax Preparation, Valuations

Currently under the federal income tax rules, legal expenses incurred by individuals are typically not deductible. Instead, they’re most often treated as either part of the cost of acquiring an asset, such as real estate, or as personal outlays (which are nondeductible). In the acquiring asset situation, legal costs usually aren’t deductible right away; instead, they  Continue Reading »

‘Persuasive’ Defense Expert Testimony Defeats ESOP Overpayment Claims

April 21, 2017 | Court Rulings, Valuations

Fish v. Greatbanc Trust Co., 2016 U.S. Dist. LEXIS 137351 (Sept. 1, 2016) In an important ESOP decision, the court dismissed claims that the defendants had committed breaches of fiduciary duty and engaged in a prohibited transaction. The case turned on the soundness of the fairness and valuation opinions a nationally recognized valuation firm had  Continue Reading »

How to Review a Valuation Report

April 17, 2017 | Valuations

Business valuations are prepared for many purposes Maine, including litigation, estate and gift tax, and the purchase or sale of a business. They can be an essential part of all of these things, and it is important to properly understand and utilize a valuation.  At Filler & Associates, we recommend that the reader critically review  Continue Reading »

Court Digs Through Appreciation Issues in Complex Divorce Case

April 12, 2017 | Court Rulings, Divorce Litigation, Valuations

Kminek-Nierenberg v. Kenneth Nierenberg, 2016 N.J. Super. Unpub. LEXIS 2015 (Sept. 8, 2016) A complex New Jersey divorce litigation with multiple defendants and several family businesses illustrates the challenges appraisers and the trial court faced in determining the appreciated value of numerous separate premarital and gifted assets for equitable distribution purposes. The case highlights basic  Continue Reading »

Consider an Alternate Metric to Value Your Small Business

March 31, 2017 | Valuations

Traditional valuation models don’t necessarily work for Maine small businesses and professional practices. Public market data may be less relevant for a small business that functions primarily as a job or steady source of income its owner(s). Instead, business appraisers and brokers typically recommend using an alternate metric for appraising small businesses known as “seller’s discretionary  Continue Reading »

Sound Valuation Report Keeps Expert Alive in Daubert Fight

March 29, 2017 | Court Rulings, Fraud Prevention, Valuations

MSKP Oak Grove, LLC v. Venuto, 2016 U.S. Dist. LEXIS 84950 (June 29, 2016) A recent fraud case illustrates how a thorough expert report can help an embattled valuator stay the course even in the tumult of litigation. The key is to document everything. Need for reverse engineering Four defendants sold their tanning salon franchise  Continue Reading »

Unilateral Partnership Dissolution Exacts Steep Price from Wrongdoer

March 10, 2017 | Court Rulings, Valuations

Congel v Malfitano, 2016 N.Y. App. Div. LEXIS 3706 (May 18, 2016) What a difference a word makes. That’s the lesson from a recent New York appellate ruling in a dispute in which a minority shareholder was found liable of wrongfully breaching the partnership agreement to secure a high price in the buyout of his  Continue Reading »