Sample case law digests added to BVLaw
These are some of the valuation-related cases we’ve added to BVLaw recently: Amboy Bancorporation v. The Bank Advisory Group, 2011 WL 1533012 (C.A. 3 (N.J.))(April 25, 2011)(unpub.) Third Circuit reverses district court determination that attorneys and appraisers are not liable for material misstatements of fair value in a proxy statement, remanding case for possible findings [...]
When is it appropriate to use a calculation of value in court?
When the court specifically asks for one! At least, that’s the implicit reading of a new California divorce case, in which both party experts valued the husband’s 80% interest in a radiology software company at the beginning of the marriage (1995), for determination of its appreciation until the company’s sale three years later (for $7.5 [...]
Fourth tax case to uphold defined value clause
In a long-awaited decision (two and a half years after trial), the U.S. Tax Court just upheld the defined value formula clauses that set the fair market value of transfers of private company stock in a gift/sale transaction. The defined value clauses—which limit gift tax exposure from the transfers—were not contrary to public policy, the [...]
Has the Tax Court become almost too valuation-savvy?
The estate reported its 41.1% limited partnership (LP) interest in a family owned, timberland holding company at just over $12.6 million; the IRS said it was worth closer to $36 million and assessed a penalty of over $2.5 million. In finding that the “correct” value of the LP interest was roughly $27.5 million, the U.S. [...]
Valuation issues central to new case law digests at BVLaw
The BVLaw digests reflect all cases where appellate level or precedential decisions were decided on a matter of financial analysis or business valuation. Among the cases the legal editors are reviewing now are the following. Manpower, Inc. v. Insurance Co. of the State of Pennsylvania, 2011 WL 1356945 (E.D. Wisc.)(April 11, 2011) Court declines to [...]
Nevada adopts ‘Delaware’ approach to fair value
A new dissenting shareholder case from Nevada poses several immediate questions. For instance, why did the dissenting shareholder (an institutional investor holding nearly 600,000 shares of preferred stock), object to the merger price at $3.00 per share when, just one year before, that was the price it paid for the shares—and a year later, during [...]
Sample case law abstracts added to BVLaw recently
Now available on BVLaw: In re Answers Corp. Shareholders Litigation, 2011 WL 1366780 (Del. Ch.)(April 11, 2011) DE Chancery Court approves sale of hard-to-value internet company, even though lack of any long-term forecasts prevented DCF analysis, and fairness opinion had to rely on market approach despite lack of truly comparable public companies. Experts: Mary O’Connor (plaintiffs); [...]
Fourth tax case to uphold defined value clause
In a long-awaited decision (two and a half years after trial), the U.S. Tax Court just upheld the defined value formula clauses that set the fair market value of transfers of private company stock in a gift/sale transaction. The defined value clauses—which limit gift tax exposure from the transfers—were not contrary to public policy, the [...]
Free state case law summary from Peter Agripedes
Peter, who writes regularly for Value Examiner on case law issues, summarized many of the most significant state-level decisions he’s seen in the last several years. His conclusion: states vary widely in how they interpret standards of value and other issues. “One of the great things about our profession is that there’s no absolute answer,” [...]
Sample of recent digests added to BVLaw
Boltar LLC v. Commissioner, 2011 WL 1314445 (U.S. Tax Ct.)(April 5, 2011) Tax Court rejects charitable easement appraisal under Daubert, finding the appraisers ignored the before and after method and rejected relevant facts in favor of those that exaggerated value. Experts: Integra Realty Resources (taxpayer); Steven Albert (IRS) Judge: Cohen State/Jurisdiction: federal Court: U.S. Tax [...]
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