Valuation Trends


Winter 2019

  • Court Adopts Appreciation Analysis That Places 'Specific Dollar Value' on Goodwill
  • Court Rejects Appreciation in Value Calculation, Citing SSVS Violations
  • Expert's Inability to Defend Income Analysis 'Is Decidely Troubling,' Court Says


Fall 2018

  • Damages Claim Fails to Provide Yardsticks Capturing Defunct Startup's Value
  • Virginia Court Nixes Challenge to Appraisal Done According to Valuation Agreement
  • Nursing Home Valuation Must Separate Real Estate from Business Activity
  • Trial Court's Stock Valuation Contravenes Agreement's Buyout Provisions
  • DOL Sues Over ESOP; Trustee Launches Daubert Attack
  • Deal Price Represents Unreliable Starting Point for Fair Value Calculation
  • Provocative Delaware Chancery Decision Favors Stock Price Over Other Fair Value Indicators

Spring 2018

  • Second Circuit Supports Nixing of Lost Profits Based on Unsuitable Benchmark
  • Court Clarifies Application of Rule 703 to Expert Testimony
  • Court Adopts DLOM-Free Valuation of Realty Holding Company
  • New York Court Validates DLOM in Real Estate Holding Company Valuation
  • Congratulations to our Vice President, Linda Trugman

Winter 2018

  • DCF Projections Failed to Reflect Target’s Operative Reality, Chancery Says
  • Tax Court Introduces Formula to Value Donated Remainder Interest
  • Delaware Supreme Court Disses Chancery’s Blending of Valuation Methods
  • Expert’s Fair Market Value Analysis Aligns with Applicable Healthcare Law
  • New Edition of Gary Trugman’s Book Now Available


Fall 2017

  • Improper Use of Active/Passive Framework Skewers Valuation
  • Eleventh Circuit Affirms Tax Court’s Valuation of Trust’s Interest in LLC
  • New Jersey Court’s Inadequate Goodwill Ruling Triggers Rebuke and Remand
  • In Controversial Move, Tax Court Tackles ‘Double Inclusion’ Problem
  • Court in Brundle Case Sticks to Earlier ESOP Liability and Damages Rulings

Summer 2017

  • Expert’s Best-Effort Medical Practice Valuation Holds Up on Appeal
  • Florida Court Rejects Active-Passive Framework in Appreciation Analysis
  • Tax Court’s Valuation of Trust’s Interest in LLC Weathers Appeal
  • New Jersey Ruling Cements Use of DLOM to Sanction Oppressing Shareholder
  • Inadequate ESOP Valuation Vetting Gets Trustee Into Hot Water

Spring 2017

  • Court Disapproves of Use of Damages Model to Establish Liability
  • Court of Appeals Sides With Taxpayers on Right to Vet IRS Expert Valuation
  • Reasonable Compensation Analysis Ignores Objective Evidence, Tax Court Says
  • Chancery Bases Fair Value Calculation on Income-Based Model

Winter 2017

  • Chancery Achieves Fair Value by Blending Three ‘Imperfect Techniques’
  • Court Sets Aside Big Lost Profits Award Based on Bad Yardstick Analysis
  • Tax Court Corrects Prior Valuation of LP Interest to Startling Result
  • Court Deems Future Lost Profits Formula an Exercise in Speculation


Summer 2016

  • Shareholder Agreement Sparks Suit Over Discount Use in Fair Market Value Calculation
  • Goodwill Snafu Invalidates Noncompete Agreement
  • Latest New York Statutory Fair Value Ruling Nixes DLOM
  • Florida Court Revisits Active-Passive Appreciation Issue
  • Proposed Regulations Under IRS Code Section 2704

Spring 2016

  • DLOM Ruling Promises End to ‘Most Difficult Case’
  • Chancery Puts Trust in Merger Price Over Questionable Methodology
  • Service Business Valuation Triggers Double Dip Rule
  • Chancery Honors Parties’ Deal to Be Bound by Appraisal
  • Destruction of Financial Evidence in Damages Case

Winter 2016

  • Dissent Says Appraiser Lacks Necessary Valuation Expertise
  • Different Ways to Find No Claim to Enhanced Value of Nonmarital Asset
  • Damages Expert Stumbles Over Causation


Fall 2015

  • Court Infers Nature of Goodwill from Nature of Business
  • What Passes for a Reliable Yardstick Method Under Daubert?
  • New Chancellor’s First Words on Tax Affecting in Fair Value Case
  • IRS Assault on Valuation Discounts for FLPs Is Looming
  • Discovery Reveals Expert’s Lack of Independence

Summer 2015

  • What Role for Revenue Ruling 59-60 Factors in Valuing Closely-Held Business?
  • Delaware Chancery Grapples With Sale Price vs. Post-Merger DCF
  • Mixing Lost Profits and Lost Business Value for Damages Calculation
  • IRS Issues Two New Job Aids
  • Congratulations to our Principals

Spring 2015

  • What Rationale for Net Book Value in Damages Analysis?
  • Ruling Reveals Delaware Chancery’s Skepticism of Valuation Experts
  • Goodwill Ownership Dominated 2014 Tax Court Valuation Cases
  • Court Chastens Expert Over ‘Severely’ Deficient Valuation


  • Court’s Mixed Message on ‘Sufficient and Credible’ Financial Evidence
  • Insights from Tax Court Cases Regarding Valuation Reports
  • A ‘’ is a ‘’: What the Value of a Domain?
  • May Court Disregard Shareholder Agreement in Judicial Buyout?
  • Murky Goodwill Testimony Makes Partner Agreement Best Indicator of Value
  • U.S. Tax Court Judge Laro Discusses Valuation and Expert Testimony Issues
  • Divorce Court Wrestles with ‘Vague and Conflicting’ Goodwill Testimony
  • DE Chancery Prefers Use of Merger Price to Determine Fair Value
  • ‘Undue’ Scrutiny of Expert’s Data Triggers Erroneous Exclusion
  • Should Dated Buyout Set Value of Stock in Closely-Held Corporation?
  • IRS Bars Appraisers for Five Years
  • Is Your Business Worth as Much as You Think? Is Your Client’s Business Worth as Much as He Thinks?
  • No Taboo Against Marketability Discount in Shareholder Suit
  • In Daubert Attack, Valuation Expert Portrayed as Mere Mouthpiece
  • Reliable or Obsolete? DE Chancery Scrutinizes Precrisis Projections
  • IRS Strains to Prove Goodwill in Like-Kind Exchange

Winter 2013

  • Another ‘Must-Read’ Decision From Del. Chancery on the DCF, Discount Rate
  • 5th Circuit Ratifies 47.5% Discounts to FLP Asset Values
  • Judicial Buyout at Fair Value Trumps Buy-Sell at Book Value
  • IRS Focus is More On Operations of FLPs, says Porter
  • Five Ways to Reduce the Costs of Financial Experts

Fall 2013

  • What’s Reasonable Compensation?
  • Beware of Experts Who Misuse Statistics

Spring 2013

  • Court Affirms No Portion of Value is Attributable to Personal Goodwill
  • Bogdanski Compares recent “Baffling” FLP Rulings
  • Lessons on Using the Guideline Public Company Method From the Delaware court of Chancery

Summer 2013

  • Buy-Sell Agreement Fuels War Over Workable Stock Appraisal Method
  • Court Accepts Cost Approach to Calculate Value of Lost Business

Fall 2012

  • Minority Discount Can Help Determine Passive Versus Active Appreciation
  • Bernier Trial Court Gets Tax Affecting Wrong Once Again
  • Actual Transaction is “Gold Standard” of Valuation, 7th Circuit Says

Summer 2012

  • Are We Still Confused About Goodwill?
  • Daubert Challenges to Financial Experts Fall to a Record Low, but Success rate Climbs to Six-year High, Says Annual PwC Study
  • Well-Planned FLP Survives IRS Challenge
  • ‘Laborious’ Buy-Sell Agreement Leads to Lengthy Litigation

Spring 2012

  • Can a Reasonable Royalty Ever Exceed Lost Profits?
  • Latest ‘Bad Facts’ FLP Case Emphasizes Poor Planning, Operations
  • Despite ‘Egregious’ Theft of Trade Secrets, Damages Hard to Prove
  • Lost Profits Expert Relied Solely on New Business Plan

Winter 2012

  • Divorce Courts Reject ‘Calculation Values’ Offered by BV Experts
  • IRS Reveals Seven Mistakes of Highly Unsuccessful Appraisals
  • Amendments to FRCP26 Re: Draft Expert Reports Could Contain Traps
  • Lost Profits Roundup: Better Industry Research & Expertise Proves Essential





Winter 2009

  • Should ‘Highest and Best Use’ GovernFair Value Standard in Dissenting Shareholder Case?
  • Divorce Court Analyzes Built-In Capital Gains in Net Asset Valuation
  • Colorado Court Considers Fair Value Standard in Divorce
  • Expert Evidence Helps Decide Partnership ‘Divorce’
  • Most Common Reasons For Write-offs in Medical Practice Valuations

Spring 2009

  • Public Company, Market Cap Approach Attacked Under Daubert
  • Statutory Fair Value Versus Fair Market Value: A Brief Historical Perspective
  • 20 Way to Avoid IRS Appraisal Audit
  • Lost Profit Testimony Falls Short of the Necessary Financial Expert Evidence

Summer 2009

  • Lack of Expert Loss Causation Evidenceis Fatal in Securities Fraud Case
  • Mixing Methods Renders Expert’s Lost Profits Opinion Unreliable
  • Court Voids Non-Compete, Remands $1.1 Million Damages
  • Can Personal Goodwill Apply to a Commercial Firm’s Value in Divorce

Fall 2009

  • Expert Event Study ‘Almost Obligatory’ to Prove Loss Causation in Securities Fraud Litigation
  • No Legitimate Business Purpose for FLP Precludes Analysis of Discounts
  • Tax Court’s Adjustment to Reasonable Compensation ‘Dizzying and Arbitrary’
  • Fair Market Value Includes Only Reasonably Foreseeable Subsequent Events
  • Top Five Key Factors in Expert Damages Testimony
  • The Most Credible Experts Admit the Weaknesses in Their Reports Up Front
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