by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations
Precision Kidd Acquisition, LLC v. Pass This Pennsylvania appellate court decision (unpublished) includes an informative discussion of how to measure damages arising out of a merger in which the seller allegedly failed to inform the buyer during negotiations that one...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations
Aspro, Inc. v Commissioner The U.S. Tax Court recently agreed with the Internal Revenue Service that management fees a corporation paid to its three shareholders over a three-year period were not deductible since none of the fees were paid “purely for services” and...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations
Magarik v Kraus Earlier this year, a New York trial court presiding over a buyout dispute featuring an online wholesaler of faucets, sinks, and fixtures rebuffed the departing shareholder’s valuation. His expert’s discounted cash flow analysis collapsed on account of...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations
The Indiana Court of Appeals and the South Carolina Supreme Court recently issued noteworthy rulings on the appropriateness of discounts in valuing minority interests. The contexts in which the issue arose were different, but, in both cases, there was a compelled sale...
by Royer Advisors | Dec 11, 2024 | Court Rulings, IRS Regulation, Valuations
Grieve v. Commissioner In a gift tax dispute, the U.S. Tax Court recently found for the taxpayer when it rejected the unusual reasoning and methodology the Internal Revenue Service’s trial expert proposed to keep low the discounts applicable to the nonvoting...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations
Robinson v. Langenbach Context is “crucial,” the Supreme Court of Missouri recently said in upholding the use of discounts in the court-ordered buyout of a minority owner’s shares in a family business. At the same time, the court acknowledged that, “usually,” the...
