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By:  Keith R. Gordon, CPA, CEF, CVA Recently, I consulted in a lawsuit involving a buyer who used a faulty valuation theory and compounded the problem by failing to do adequate due diligence. They were sure it was a great opportunity and were afraid if they didn’t act fast, someone else would beat them to […]

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By Keith R. Gordon, CPA, CEF, CVA In even the most amicable of divorces, the end of a marriage can be an emotionally draining endeavor. When a profitable business is involved, it can be a remarkably financially draining one, too. As the parties divide their assets and liabilities in a process called “equitable distribution,” it […]

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Business Valuation Case Study: Patricia Laidler v. Hesco Bastion Environmental, Inc.

01-15-2015

Business Valuation Court Case Analysis Patricia Laidler v. Hesco Bastion Environmental, Inc., 2014 Del. Ch. (May 12, 2014) The Delaware Chancery Court relied on a direct capitalization of cash flows (DCCF) analysis and rejected the market approach in determining the fair value of a minority shareholder’s ownership interest in Hesco Bastion USA, Inc. (Hesco). This […]

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Business Valuation Case Study: Surgem, LLC v NJ Superior Court

Business Valuation Court Case Analysis Surgem, LLC v. Achievmed, Inc., 2013 NJ Superior Court, Appellate Division (Oct 16, 2013) The New Jersey Superior Court, in determining the fair value of an 8.74 percent ownership interest in Surgem, LLC (or Surgem), commented on the expert reports submitted, ultimately disregarding one expert’s report, a Calculation of Value, for […]

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In every valuation report, a section devoted to the economy is a required piece of the puzzle.  According to IRS Revenue Ruling 59–60, an IRS treatise on the valuation of closely held…

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Business Valuation Case Study: Huff Fund Investment Partnership v. CKx, Inc

Valuation Court Case Analysis Huff Fund Investment Partnership v. CKx, Inc., 2014 Del. Ch. LEXIS 82 (May 19, 2014) The Delaware Chancery Court rejected valuations based on a discounted cash flow (DCF) analysis due to the speculative nature of the assumptions.  According to the Court in the Huff case, under Delaware appraisal law, “When management projections […]

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