by Royer Advisors | Dec 11, 2024 | Divorce Litigation, Financial Planning, Valuations
During a divorce, when either spouse owns a private business interest, the divorce settlement is only as reasonable as the value of the business and the compensation of its owners. Replacement compensation can become a controversial issue, especially when the spouse...
by Royer Advisors | Dec 11, 2024 | Business Plans, Financial Planning, Valuations
Maine business owners are often surprised when they receive their valuation report from a hired appraiser. Often times the expert is hired to determine the fair market value of a business interest for, say, divorce or gift and estate tax purposes, and the client...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Schickner v. Schickner, 2015 Ariz. App. LEXIS 48 (April 16, 2015) In the context of divorce, may a court apply a minority discount when valuing a minority interest in a business to determine the nonowner spouse’s fair share? This was the primary issue the Arizona...
by Royer Advisors | Dec 11, 2024 | Court Rulings, IRS Regulation, Tax Preparation, Valuations
Kardash v. Commissioner, 2015 Tax Ct. Memo LEXIS 69 (March 18, 2015) A Tax Court memo resulting from a transferee liability case includes an informative discussion of the valuation methodologies the parties’ solvency experts used to determine the company’s fair market...
by Royer Advisors | Dec 11, 2024 | Court Rulings, IRS Regulation, Valuations
Fox v. CDx Holdings, 2015 Del. Ch. LEXIS 194 (July 28, 2015) The Delaware Court of Chancery has on numerous occasions called out major financial institutions for providing erroneous or even “motivated” valuations. But few opinions include more searing criticism than a...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Valuation experts often criticize the Excess Earnings Method, calling it ambiguous, over-simplified or outdated. But it’s still used in some jurisdictions as a way to value small businesses and professional practices, especially in a divorce setting. The method...
