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.
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The Birthing of New York’s Marketability Discount in Fair Value Cases: A Family Affair

This week’s New York Business Divorce traces New York’s endorsement of the marketability discount in fair value proceedings to its first application in 1982 by a court-appointed Referee named Sam Tripp — my grandfather!
Continue Reading The Birthing of New York’s Marketability Discount in Fair Value Cases: A Family Affair
Threading the Fair-Value Needle: Court Finds Major Flaws in Both Sides’ Appraisals in Arriving at Its Own Value

Justice Alan Scheinkman’s highly detailed, 33-page decision last week in Verghetta v Lawlor, valuing a minority interest in two LLCs that own and operate Planet Fitness health clubs, is must reading for lawyers and business appraisers who handle fair value contests. Learn more in this week’s New York Business Divorce.
Continue Reading Threading the Fair-Value Needle: Court Finds Major Flaws in Both Sides’ Appraisals in Arriving at Its Own Value
Court Applies 25% Marketability Discount Despite “Strong Indicators of Liquidity”

For the second week in a row, New York Business Divorce examines the always controversial discount for lack of marketability in fair value contests, this time focusing on a recent New Jersey appellate decision applying a 25% DLOM despite strong evidence of liquidity. …
Continue Reading Court Applies 25% Marketability Discount Despite “Strong Indicators of Liquidity”
The DLOM Debate Heats Up

Do New York courts in fair value proceedings unfairly apply a marketability discount at the shareholder level? The author of a recently published article thinks so, as you’ll learn in this week’s New York Business Divorce. …
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Should Business Appraisers Rely on Case Precedent for Discounts?

In a prior, reported decision involving Company A, the judge applied a 25% marketability discount. Can that decision be used to support a 25% discount in valuing unrelated Company B? Get the answer in this week’s New York Business Divorce. …
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Appellate Court Upholds 0% Marketability Discount in LLC Fair Value Case

A Brooklyn appellate panel last week provided more fodder for the DLOM debate that’s been in the legal news of late, upholding a 0% DLOM in a fair value appraisal of a membership interest in a real estate holding company. It’s featured in this week’s New York Business Divorce.
Continue Reading Appellate Court Upholds 0% Marketability Discount in LLC Fair Value Case
Court’s Rejection of Marketability Discount in Zelouf Case Guided by Fairness, Not “Formalistic and Buzzwordy Principles”

The Zelouf case returns to the spotlight in this week’s New York Business Divorce, occasioned by Justice Shirley Kornreich’s decision last month denying a motion to reargue the court’s refusal to apply a marketability discount in valuing the shares of a dissenting minority shareholder of a family-owned business.
Continue Reading Court’s Rejection of Marketability Discount in Zelouf Case Guided by Fairness, Not “Formalistic and Buzzwordy Principles”
Court Rejects Potential Acquirers’ Expressions of Interest, Relies Solely on DCF Method to Determine Fair Value of 50% Interest in AriZona Iced Tea

After years of litigation and a lengthy trial, earlier this month Justice Timothy Driscoll released his decision fixing the fair value of the petitioning 50% shareholder’s interest in the AriZona Iced Tea companies. You won’t want to miss it in this week’s New York Business Divorce.
Continue Reading Court Rejects Potential Acquirers’ Expressions of Interest, Relies Solely on DCF Method to Determine Fair Value of 50% Interest in AriZona Iced Tea
Zelouf (Part One): Marketability Discount Rejected in Fair Value Proceeding
This week’s New York Business Divorce presents the first of a two-part examination of Justice Shirley Kornreich’s must-read decision in Zelouf International v. Zelouf, a dissenting shareholder appraisal proceeding in which the court rejected application of a marketability discount. …
Continue Reading Zelouf (Part One): Marketability Discount Rejected in Fair Value Proceeding