While there is tremendous diversity from state to state when it comes to statutory and judge-made law in business divorce cases, business valuation principles are—with a few notable exceptions—far more homogenous.  So it makes sense to occasionally venture beyond New York’s borders to see how other courts and experts are addressing the business valuation questions that New York-based business divorces often encounter.

This week’s post looks at several recent decisions across the country concerning valuation principles and discounts.  While each case features different applicable rules and agreements, our New York readers would be wise to note the persuasive power of these cases, especially given the sometimes-thin body of New York caselaw on business valuation issues.Continue Reading Cross-Country Valuation Check-Up: Discounts, Buy-Sell Agreements, and Ambiguity Potholes

This week’s New York Business Divorce post features a decision after valuation trial nine-years in the making, determining the fair value of a 50% interest in two family-owned real estate holding companies
Continue Reading Fair Value Decision Caps Decade-Long Dispute Over Family-Owned Real Estate Holding Companies

When valuing an owner’s interest in a closely-held company, the calculation and applicability of a discount for lack of marketability is among the most fertile grounds for sharp disagreement. One open question: should the DLOM account for any contractual restrictions on a controlling owner’s ability to transfer his or her control?
Continue Reading Fueling the DLOM Debate: Control Transfer Restrictions and the Discount for Lack of Marketability

Should courts apply a marketability discount in determining the fair value of interests in realty holding companies? In downstate New York, the answer may vary depending on whether the court lies within the First or Second Departments of the Appellate Division. This week’s New York Business Divorce has the story.
Continue Reading A River’s Divide: Time for the Manhattan and Brooklyn Appellate Courts to Agree on Marketability Discount in Fair Value Proceedings

This 7th annual edition of Summer Shorts presents brief commentary on three must-read decisions in business divorce cases involving the use of special litigation committees in derivative actions by LLC members; dissolution of a family-owned real estate holding corporation and LLC; and a Delaware case in which Chancery Court ordered dissolution of a deadlocked LLC co-owned by celebrity chef Gordon Ramsay.
Continue Reading Summer Shorts: Three Must-Read Decisions

New Jersey’s approach to the marketability discount in statutory fair value cases has been called a “business appraiser’s nightmare.” A recent decision by a New Jersey trial court, in which it applied a 25% marketability discount to penalize a 50% owner found guilty of oppression against the other 50% owner, adds fuel to the debate. Check it out in this week’s New York Business Divorce.
Continue Reading Has New Jersey Gone Off Its DLOM Rocker?

This week’s New York Business Divorce previews and links to the latest podcast episode of the Business Divorce Roundtable featuring an interview with business appraiser Greg Barber following publication of his intriguing article in the NY State Bar Association Journal on the hot topic of marketability discounts in statutory fair-value proceedings.
Continue Reading Marketability Discount Revisited: Interview With Greg Barber

This week’s New York Business Divorce announces the birth of its audio cousin, the Business Divorce Roundtable podcast, an interview-format podcast featuring discussions with top experts on timely business divorce topics including, for its premiere episode, an interview with leading business appraiser Chris Mercer.
Continue Reading Announcing the Business Divorce Roundtable Podcast