In re Appraisal of Dell Inc., 2016 Del. Ch. LEXIS 81 (May 31, 2016) The Delaware Court of Chancery’s favoring the value derived from a post-merger discounted cash flow analysis over the deal price in the Dell statutory appraisal action stunned the world of high finance. How was it possible that the merger price did  Continue Reading »

It’s important for small business owners to know who much their company is worth. To put it simply, it is worth what the highest bidder is willing to pay for it and no more or no less. Nevertheless, by taking all the relevant factors into account, the business can be positioned for the best possible  Continue Reading »

There are numerous uncertainties in the marketplace currently facing businesses. Tax laws could substantially change as President Trump and Republican congressional leaders work toward fulfilling their campaign promises. The estate tax could be repealed, and various laws and regulations (including the Dodd-Frank and Affordable Care Acts) could be repealed or revised, and interest rates and  Continue Reading »

When a business is sold, it may sell for more (or less) than the appraised value. Sometimes this doesn’t make sense to laypeople, but valuators understand that there are many valid reasons why price and value could be different. Small business owners that understand this subtlety are better positioned to make informed decisions. Price vs. Value Price  Continue Reading »

Pattridge v. Starks, 2016 La. App. LEXIS 315 (Feb. 24, 2016) An economic damages case stemming from the breach of a non-compete agreement features a noteworthy discussion on the difficulty of quantifying losses where the injured company is of a “volatile nature.” The plaintiff’s’ expert used commonly accepted valuation methods for his calculation, but the  Continue Reading »

The selection of a business valuation expert is critical when you or your clients have a need to know the value of their Maine-based business. Before selecting an expert, there are several considerations that must be made. The primary consideration is the purpose of the valuation. Filler & Associates has come up with some qualifications  Continue Reading »

Grant v. Grant, 2016 Tenn. App. LEXIS 327 (May 12, 2016) Appraisers rely on clear directives from the courts to produce sound valuations, but they may not always get them. A recent Tennessee appellate ruling in a divorce dispute is a case in point. The issue was whether it was appropriate to use a marketability  Continue Reading »

It is a good idea to know the reasons for a valuation to be able to take advantage of situations when it may be beneficial. Some reasons for obtaining a valuation are a necessity, such as for determining the value of the business interest in an estate. Other reasons are more elective, but nevertheless helpful  Continue Reading »

Hanckel v. Campbell (In re Hanckel), 2015 Bankr. LEXIS 4202 (Dec. 11, 2015) Prior to filing for Chapter 7 bankruptcy, the debtor, who owned a stake in a family business, transferred his share to his father, the co-owner. Subsequently, the Chapter 7 trustee proved the transfer was a fraudulent conveyance, and the court declared it  Continue Reading »

Merion Capital LP & Merion Capital II LP v. BMC Software, 2015 Del. Ch. LEXIS 268 (Oct. 21, 2015) Don’t second-guess the result of a robust, arm’s-length sales process! That’s the view the Delaware Court of Chancery has been taking lately in statutory appraisal actions—and it recently did so again. ‘Wildly divergent’ DCF results The  Continue Reading »