MBAF is pleased to present the January/February 2019 issue of Litigation & Valuation Report. Here’s a brief glance at what you’ll find in the January/February issue…
Differentiating Active vs. Passive Appreciation in Divorce
The laws in most states make a distinction between marital and separate property for purposes of marital dissolution. In cases where property increases in value during the marriage, experts may be hired to determine whether that appreciation is passive or active. This article explains the difference between these terms and why it matters when divvying up a marital estate in divorce.
Dissenting Shareholders: What’s the Fair Value of the Interest?
The Tennessee Supreme Court recently turned to case law from Delaware to decide on the appropriate method to value shares in appraisal rights actions. This article explains how the Delaware Block method works and why the state supreme court decided to allow “any technique or method that’s generally acceptable in the financial community and admissible in court.”
Athlon Sports Communications v. Stephen Duggan, et al., No. M2015-02222-SC-R11-CV, June 8, 2018
Weinberger v. UOP, Inc., 457 A.2d 701, 712-13, Del. 1983
Market Approach – How to Pick a Relevant Pricing Multiple
Courts tend to prefer the market approach in business valuation, because it’s based on real-world “comparable” transactions. This article identifies different pricing multiples that may be used in the market approach and explains when each one tends to work best. Statistical tools can help business valuation experts evaluate which multiples are most relevant based on market evidence.
A Picture’s Worth a Thousand Words – Why Valuation Experts Use Visual Aids
Valuation experts often use visual aids, such as graphs and charts, to capture the attention of a judge or jury and drive home key points. This article highlights the benefits of using visual aids during trial and deposition, and provides examples of situations in which visual aids might be used to reinforce an expert’s conclusions.