All News


Daubert tests reliability of testimony, not power of persuasion

The plaintiff, representing the debtor enterprises, sued executives of related family-run consumer lending and retail businesses that had filed for Chapter 11 bankruptcy over allegedly fraudulent transfers. Read more >>

Appraisers see spike in engagements due to proposed Section 2704 regs

At the ASA Advanced Business Valuation Conference last week in Boca Raton, Fla., valuation practitioners told us that they are seeing an increase in valuation engagements triggered by the proposed Section 2704 regulations. They expect the increased business to gain steam as the regs continue to sink in with attorneys, wealth planners, and clients. Read more >>

Challenge to new Section 2704 regulations is shaping up

The accounting, valuation, and legal professions are hard at work to defeat the Treasury Department's proposed Section 274 regulations. The new regs would curtail, if not entirely eliminate, valuation discounts in family-controlled entities. Read more >>

Act now to avert tough IRS crackdown on estate valuations

Well-crafted comments can change the course of the controversial proposed IRC Section 2704 regs designed to curb estate valuation discounts. There's a concern that, if these regs are finalized as proposed, the federal government will go after valuation discounts in other contexts. Comments are due by November 2, and there's a public hearing in Washington on December 1. Read more >>

Fledgling BVers to compete in Fifth Annual Business Valuation Challenge

College students from across the country will compete in the upcoming Business Valuation Challenge hosted by Georgia State University. There are 24 first-come-first-serve slots, and registrations are due September 15. BV firms can sponsor students, and it's a great place for you to scope out new talent. Read more >>

Chancery achieves fair value with three imperfect valuation techniques

The whole is greater than the sum of its parts. Perhaps Chancellor Bouchard thought of Aristotle when he recently ruled in a statutory appraisal action that, even though the results of three common valuation techniques were unreliable indicators of value, in combination they established fair value. Read more >>

Tax Court revaluation means big-time savings for taxpayer

In an estate tax dispute that has lasted for over five years, the Tax Court recently revalued the decedent’s minority interest in an Oregon family business by order of the 9th Circuit Court of Appeals. The recalculation proved a boon to the taxpayer. Read more >>

Dreaded IRS estate valuation discount regs released

The Treasury has released long-awaited proposed IRC Section 2704 regulations designed to curb estate valuation discounts. It appears that the proposed regulations eliminate almost all minority discounts for closely held entity interests, including operating businesses owned by a family. The proposed regs have triggered a strong response from the valuation community, legal profession, and others. Read more >>

Expert report proves best defense against Daubert offense

In litigation, attacks on expert opinions are par for the course, but a sound expert report can ward off a Daubert challenge and clear the way to admission at trial, as a recent fraud case illustrates. Read more >>

Proposed method to deal with confusion over discounts

A number of leading valuation experts have called for the profession to speak with one voice and eliminate the confusion over the use of discounts. One valuation expert offers up some nomenclature and—more importantly—a framework that he hopes will help with this thorny issue. Read more >>

Delaware Supreme Court Judge Boos Chancery's Option Valuation Case Analysis

In reviewing one of the Delaware Court of Chancery's most noteworthy rulings from 2015, one judge on the state Supreme Court wrote a stinging critique of the trial court's analysis. Read more >>

Brexit's impact on cost of capital

The Brexit vote reinforces the need for internal consistency between the elements of cost of capital and the current economic environment, according to leading global valuation experts and finance professors. Also, there may be a “new normal” in terms of interest rates, risk premiums, and growth. Read more >>

How else to look at the 'Gawker' case: It's about unjust enrichment

It's not your average lost profits or lost business opportunity case. Rather, Hogan's damages experts were successful in quantifying damages under the less-common unjust enrichment theory. Rather than focusing on the damages to Hogan, the plaintiff, stemming from Gawker's misconduct, the experts calculated the gain to Gawker, the defendant, from the misuse of Hogan's assets, that is, his brand and other intellectual property. Read more >>

FVQI exposure drafts comment period extended to August 24

You now have until August 24 to comment on two important exposure drafts that relate to the ongoing fair value quality initiative (FVQI) designed to improve financial reporting valuations for U.S. publicly traded companies. Read more >>

Tenn. appeals court muddies the waters regarding use of DLOM in divorce valuation

So much for clarity. A recent Tennessee appeals court decision hinged on the issue of whether a marketability discount was appropriate in the valuation of the husband’s interests in three real estate development partnerships. In reviewing the trial court’s analysis, the appeals court suggested that the lower court misunderstood the principle behind DLOM but ultimately upheld the lower court’s findings. The resulting decision leaves valuators in a pickle as to when to apply the discount and at what rate. Read more >>

How to value a small piece of a famous rock song

If the jury had sided with the plaintiff in the Led Zeppelin "Stairway to Heaven" case, it would have had to carve out the value of the riff that only forms part of the song. BVWire asked Michael Pellegrino (Pellegrino & Associates), a valuation expert (and musician) who specializes in intellectual property, for some insights into some of the thoughts behind how this would have been determined Read more >>

Why Del. Chancery rejects merger price in 'Dell' statutory appraisal action

It decided to give no weight to the final merger price—$13.75 per share, and a special $0.13 dividend issued to all shareholders—but rely exclusively on its own post-transaction DCF analysis to determine the fair value of the company. In so doing, the court deviated from a number of Chancery decisions—several issued in 2015—that found the deal price was the most reliable indicator of the company’s fair value. Read more >>

Categories