DE Chancery Prefers Use of Merger Price to Determine Fair Value
Huff Fund Investment Partnership v. CKx, Inc., 2013 Del. Ch. LEXIS 262 (Oct. 31, 2013) It’s no secret that the Delaware Court of Chancery has a strong liking for the discounted cash flow (DCF) analysis in fair value determinations. For this reason, a decision in which...
Disclaim Responsibility in Contracts
All small business owners should realize the importance of contracts, since they are part of everyday business, whether it's the tiny print at the bottom of a bill or an agreement to buy office equipment. Depending on how complex the deal is, contracts with customers...
Create a Plan for Family Business Succession
If your Maine-based business is family owner, sooner or later, it will be time to hand over the reins to the younger generation. In order to improve the odds for continued success of your family business, you need to develop a plan of succession. If you already have...
S Corps: Time for a Year-End Tax Projection
Fall is just beginning, but it’s not too early to think about year-end tax planning. As the end of the year approaches, it's time to identify moves small business owners can make before December 31st. The first thing to do is to make a projection of this year's...
What You Need to Know about Board Meetings and Resolutions
A corporate business owner with partners is knowledgeable about what it takes to keep the company running smoothly, but is often unaware of the statutory requirements for a board of directors. Someone with the title of president or chief operating officer may...
Profit Audits Can Revive the Bottom Line
It isn’t necessarily true that to increase profits a small business needs to increase sales. Extra cash could already be available. A thorough profit audit can uncover those dollars in every department of your Maine-based small business. Here are five ways to start...
Tax Court Explains How to Value a Holding Company and Discount For BICG Liability
Just as film critics predict that a movie they see today will be a contender in next year's Oscar race, we venture to say that the Tax Court’s recent Estate of Richmond opinion will be one of the most important valuation decisions of 2014. It deals with a number of...
Successful Bill Collecting Begins with Information
As a small business owner, you are always going to have customers who don't pay their bills on time. Due to unique relationships with customers as well as the varied responses they have to collection efforts, trying to collect the money owed to your business can be a...
Vague Benefit Policies are Risky
It's critical to have a written policy at your company detailing how vacation and paid time off is accrued. Many small businesses offer paid vacation, paid sick leave, paid time off or paid holidays, but have no formal policy in place. Legally, there is an implied...
Don’t Forget About Your Expert Valuation, DE Chancery Warns
Even when a case ostensibly is not about valuation, valuation issues often play a pivotal role, and failure to provide a valuation may undermine a party’s claim. This is one of the lessons gleaned from a Delaware shareholder suit that moved from the Delaware Court of...