Category Archives: Valuations

Asset-Based Appraisal Unsuitable for Fair Value Determination, Court Says

June 29, 2020 | Court Rulings, Valuations

Linde v. Linde In a bitter fight between siblings over the buyout of the minority shareholder’s interest in a successful construction business, the trial court found the asset-based valuation the majority shareholder’s expert proposed was fatally flawed for at least two reasons. The dispute involved Linde Corp. (LindeCo), one of several construction companies the Linde  Continue Reading »

Valuation Underpinning Contested Stock Sale Reflects Fair Value, Court of Chancery Says

June 15, 2020 | Court Rulings, Valuations

Coster v. UIP Companies In a breach of fiduciary duty action arising out of a controversial stock sale, the Delaware Court of Chancery dismissed the plaintiff’s attacks on the underlying valuation, noting the appraiser was “exceptionally knowledgeable about the industry” and held “informed beliefs” as to the company’s specific structure. His methodology generated a reliable  Continue Reading »

Connecticut Court Says ‘No’ to Tax Affecting but Limits the Reach of Its Ruling

June 1, 2020 | Court Rulings, Valuations

R.D. Clark & Sons, Inc. v. Clark In a buyout dispute involving a Connecticut family business, an appellate court recently upheld the trial court’s decision not to tax affect the earnings of the company in valuing the departing shareholder’s interest, even though experts for both sides tax affected. However, this particular ruling is unlikely to  Continue Reading »

Financial Expert Testimony Persuades Court to Order Inspection of Company Records

May 18, 2020 | Court Rulings, Valuations

Helen Ziegler Benjamin v. Island Management In a family dispute involving an irrevocable trust and several related closely held companies, the plaintiff trustees alleged a management company managed by certain family members was involved in misconduct. A discovery dispute ensued over the plaintiffs’ demand to inspect certain records and books of the defendant company. The  Continue Reading »

High Court Approves of Trial Court’s Rejection of Discounts in Fair Value Determination

May 4, 2020 | Court Rulings, Valuations

Puklich v. Puklich A buyout dispute between siblings who owned several businesses generated a noteworthy decision from the North Dakota Supreme Court on the use of valuation discounts. Reviewing the applicable case law, the high court found the trial court, in determining the fair value of one sibling’s minority share in a closely held corporation,  Continue Reading »

Nonowner Spouse Obtains Discovery of Valuation-Related Info from Owner Spouse’s Medical Practice

April 6, 2020 | Court Rulings, Divorce Litigation, Valuations

Hall v. Hall A Florida divorce case prompted an important discovery ruling from the appellate court as to a nonowner spouse’s right to access documents and information regarding the owner spouse’s interest in a large medical practice. The wife was one of 75 owners in a large medical practice that had 200 physicians. After she  Continue Reading »

Court Says Corrected DCF Still Supports Original Fair Value Determination

March 23, 2020 | Court Rulings, Valuations

In re Appraisal of Jarden Corp. The Delaware Court of Chancery’s recent decision to use the unaffected market price as fair value prompted the petitioners to file a motion for reargument. In its original opinion, the court, as part of its comprehensive analysis, reviewed the opposing experts’ discounted cash flow calculations and, finding neither entirely  Continue Reading »

Unadjusted Deal Price Best Represents Fair Value, Court of Chancery Says

March 9, 2020 | Court Rulings, Valuations

In re Appraisal of Columbia Pipeline Grp., Inc. In a statutory appraisal case featuring a publicly traded company, the Court of Chancery, after an exhaustive evaluation of the sale process, found the deal price was the best evidence of fair value. It said neither side met its burden of proof to justify a downward or  Continue Reading »

BV Expert Shows How to Produce a Viable Valuation with Little Financial Data Available

February 24, 2020 | Accounting Standards, Valuations

Kvinta v. Kvinta BV expertise matters, as a recent Florida divorce case shows in which the parties’ experts faced the challenge of valuing a company that once operated abroad but was sold a decade before the divorce trial. Only the owner spouse’s experienced valuation expert produced a defensible valuation, the trial court found. The state  Continue Reading »

Deal Price Prevails in Yet Another Delaware Statutory Appraisal Ruling

February 10, 2020 | Court Rulings, Valuations

Stillwater Mining Co. Nine days after his ruling in Columbia Pipeline, Vice Chancellor Laster again found the deal price was the most reliable indicator of fair value in a statutory appraisal case involving a publicly traded mining company. The Court of Chancery’s analysis in Columbia Pipeline served as a template for this case, but the  Continue Reading »