Business Valuation Articles
To Tax Affect or Not to Tax Affect? Federal Case Reviews the Tax-Affecting Debate for Pass-Through Entities
Posted by Louis Cercone, Jr. on October 22, 2019
In Kress v. United States, a federal district court accepted the practice of tax affecting the earnings of so-called “pass-through” entities. It also rejected the application of a premium to reflect the tax advantages of owning a minority interest in a pass-through business.
Posted by Louis Cercone, Jr. on September 17, 2019
Delaware’s Supreme Court recently struck down a controversial statutory appraisal decision in Verition Partners Master Fund Ltd. v. Aruba Networks, Inc.
Posted by Louis Cercone, Jr. on August 20, 2019
The buyout provision of an owners’ agreement must be carefully drafted and regularly reviewed. If it isn’t, the buyout may not be legally enforceable — or serve the owners’ current needs.
Posted by William P. Allen on August 06, 2019
In litigation involving professional practices, many courts have recognized the importance of industry-specific valuation experience.
Posted by Louis Cercone, Jr. on June 18, 2019
In commercial tort claims, courts must decide how much damage the plaintiff suffered from the defendant’s alleged wrongdoing. A recent Eighth U.S. Circuit Court of Appeals case upheld a jury’s damages award based on lost market value, even though the business wasn’t completely destroyed.
Posted by Douglas Sosnowski on May 21, 2019
When divorcing spouses own a private business interest, it complicates the settlement process. In general, the business needs to be valued and then included — either entirely or partially, depending on state law and legal precedent — in the marital estate.
Posted by Louis Cercone, Jr. on May 07, 2019
In intellectual property infringement cases, business valuation experts often use the Georgia-Pacific model to determine reasonable royalty rates. There are 15 factors that are considered under this model, but there is a market-based alternative that has also been gaining momentum.