August 22, 2015 | Valuations
The valuation opinions of nonexperts can be a useful reality check on the opinions of bona fide valuation experts, says the Delaware Court of Chancery in a case that involves an increasingly popular technique known as “appraisal arbitrage.” The court’s finding applies to other cases involving valuation matters. Discovery dispute: Two investment firms bought millions Continue Reading »
August 10, 2015 | Court Rulings, Valuations
Wisniewski v. Walsh, 2013 N.J. Super. Unpub. LEXIS 724 (April 2, 2013) Children learn that bad behavior has consequences. An appellate court recently taught a similar lesson to a troublemaking shareholder whose doings forced a buyout. Three siblings each owned a one-third interest in a family business. They had a falling out, and one sued Continue Reading »
August 7, 2015 | Valuations
Bank of America, N.A. v. Veluchamy (In re Veluchamy), 2014 Bankr. LEXIS 5106 (Dec. 18, 2014) A noteworthy discussion involving reputed valuation experts over how to value stock in one of the defendants’ S corporations lies buried in a bankruptcy case that features over 20 claims of fraudulent transfers. The court ruled on bread-and-butter valuation Continue Reading »
July 26, 2015 | Court Rulings, Valuations
Valuation experts receive a lot of advice on how to guard against an attack from the opposing side, but sometimes an attack can come from the expert’s own client. A recent case shows how an appraiser who sued a client over unpaid fees was put on the defensive. Costly divorce: The client hired an accounting Continue Reading »
July 12, 2015 | Valuations
Lane v. Lampkin, 2014 Miss. App. LEXIS 497 (Sept. 16, 2014) How do you assess damages in a situation in which one of two equal shareholders died and the surviving partner feels compelled to open a new company that does the same work as the original company? A divided appeals court recently dealt with the Continue Reading »
July 11, 2015 | Court Rulings, Financial Planning, Valuations
Financial experts are often needed in commercial litigation cases. They could be used to value a business, figure out economic damages, or to look into fraud allegations. In these cases, the quality of the numeric data that is available to the expert is critical, affecting both the time that the financial expert must put into Continue Reading »
June 26, 2015 | Court Rulings, Valuations
Sometimes courts face a hard choice, having to decide between equally compelling and competent valuations. Not so in a recent fair value proceeding in which the skills gap between the testifying experts made it easy for the court to pick the winner. Biz divorce: The petitioner and the respondent were the two owners of a Continue Reading »
June 25, 2015 | Valuations
For small business owners, it may seem like all you need is a little business and financial knowledge to perform a quick calculation to determine a business’ value. However, experienced valuation professionals apply tested valuation approaches that are based on real world market data, and, importantly, they have strong verbal and written communication skills that Continue Reading »
June 12, 2015 | Business Plans, Financial Planning, Valuations
It seems obvious that the best time to find out about possible culture differences between two companies considering a merger is before the deal is complete. One of the most common reasons for mergers or acquisitions to fail is concern about cultural integration. It has become a high priority for companies considering these transactions to Continue Reading »
June 2, 2015 | Business Plans, Valuations
Usually a professional appraiser will seek input from the current owners when he or she is valuing a business. They want to get the inside scoop on how the business works, and it is an important part of the appraisal process. Valuators need not only knowledge related to valuation principles, but also a thorough understanding Continue Reading »