Towerview LLC v. Cox Radio, Inc., 2013 Del. Ch. LEXIS 139 (June 28, 2013) Five years after the 2008 economic meltdown, observers look back with a good deal of hindsight. But when the Delaware Court of Chancery recently assessed the reliability of prerecession management projections for its discounted cash flow analysis (DCF), hindsight is precisely  Continue Reading »

Marine Travelift, Inc. v. Marine Lift Systems, Inc., 2013 U.S. Dist. LEXIS 91268 (June 28, 2013) Valuation experts often build on someone else’s assumptions to make reliable calculations. But can an expert simply evaluate and validate information from others without testing the underlying assumptions or doing an independent analysis? A recent lost profits case illustrates.  Continue Reading »

In re Eastman Kodak Company, 2013 Bankr. LEXIS 3325 (Aug. 15, 2013) Valuation experts who take on an engagement for which they lack the qualifications or the time risk a tongue-lashing in court, as a recent bankruptcy case demonstrates. This case highlights the importance of having a highly qualified valuation expert. For more on this,  Continue Reading »

Alberts v. HCA, Inc., 2013 U.S. Dist. LEXIS 96646 (July 11, 2013) In his appeal, a trustee “strenuously” contested the Bankruptcy Court’s decision to consider a $20.6 million capital transfer as a surplus rather than a necessary asset for operations when the court calculated the business enterprise value of a hospital under the income approach.  Continue Reading »

The broker and valuation analyst bring very different perspectives to the small business owner. The broker and business owner have the joint goal of finding the highest bidder. The valuation analyst has the goal of providing the business owner with an objective conclusion of value for widely different purposes. During the life of a business,  Continue Reading »

When using non-compete clauses in employment contracts, company managers should be mindful that such provisions are better able to withstand legal challenges if they are narrowly tailored. As an attorney, your business clients should consult with you before using these clauses. When an employee challenges a non-compete agreement, courts often look at whether the agreement  Continue Reading »

In the wake of the 1993 Daubert case, challenges against expert witnesses in stock valuation cases have found greater success. Still, not all Daubert disputes succeed. One case before the U.S. Court of Federal Claims helped clarify how one party can successfully challenge the qualifications or methodologies of an expert witness. The case involved a dispute over  Continue Reading »

Whether you’re setting up a new company in the Greater Portland area, or you’ve been in business for years, you need to evaluate which legal structure is best for your enterprise. No one option is best for every type of operation. The number of owners, taxes, and your business goals are all important factors to  Continue Reading »