Lack of Evidence KOs Claim for Goodwill

by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations

Reedy-Huffman v. Huffman, 2015 Alas. LEXIS 56 (May 20, 2015) Hire a valuation expert. That’s the message the Alaska appeals court sent in a ruling involving a professional practice caught up in a divorce. The opinion also includes a good summary of the state’s...

How Industry Fits Into the Valuation Puzzle

by Royer Advisors | Dec 11, 2024 | Business Plans, Uncategorized, Valuations

IRS Revenue Ruling 59-60 is an essential building block of modern appraisal practice. It identifies “the condition and outlook of the specific industry” as one of the factors to consider when valuing a private business. But how do investors measure...

No Place for Asset Appraisal in Trust Dispute, Court Says

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Cartwright v. Jackson Capital Partners, Limited Partnership, 2015 Tenn. App. LEXIS 361 (May 21, 2015) Did the appraiser use the wrong method for the case? This question took center stage in a lawsuit featuring the beneficiary of a grantor trust who claimed the trustee...

Timing is Everything: How to Handle Subsequent Events in Valuation

by Royer Advisors | Dec 11, 2024 | Court Rulings, IRS Regulation, Tax Planning, Valuations

Business valuations are prepared as of a specific date, similar to balance sheets. Sometimes a valuation’s effective date is in the past, and events have occurred after the valuation date that would have impacted the company’s value if investors knew (or...

Chancery Adopts Merger Price Sans Cost Savings Reduction

by Royer Advisors | Dec 11, 2024 | Business Plans, Court Rulings, Uncategorized, Valuations

Chancery Adopts Merger Price Sans Cost Savings Reduction Merlin Partners LP v. AutoInfo, Inc., 2015 Del. Ch. LEXIS 128 (April 30, 2015) In a Delaware statutory appraisal action, the Chancery once again determined that the merger price trumped values resulting from...

To Discount or Not to Discount (That is the Question)

by Royer Advisors | Dec 11, 2024 | Business Plans, Financial Planning, Valuations

Value is relative. Some assignments require the valuation of a minority interest that may lack control and “marketability,” while others call for an appraisal of the entire entity on a controlling basis. How do these situations differ, and how are these differences...