Book Value Accurately Reflects Departing Partner’s Interest

Fancher v. Prudhome, 2013 La. App. LEXIS 318 (Feb. 27, 2013)
A withdrawing member of a limited liability company unsuccessfully appealed the trial court’s decision to use the book value of the company’s assets, rather than rely on his expert’s going concern analysis, to capture the fair market value (FMV) of his share.

Estate of Michael Jackson is suing the IRS

Intellectual property, business interests, and a “contingency nonappearance and cancellation” policy are among the assets the IRS says have been undervalued by the estate of Michael Jackson. The estate is fighting back, filing a petition in Tax Court.
Not black or white: An article in Forbes points out how subjective valuation can be,

Using Comparables to Determine Market Growth Rate

Wathne Imports, Ltd. v. PRL USA, Inc., et al., 953 N.Y.S.2d 7, 101 A.D.3d 83 (2012)
Appellate Division of the Supreme Court of New York, First Department: Opinion Delivered Oct. 18, 2012
Wathne Imports, Ltd. (“Wathne”), a privately held business that manufactures and sells handbags and other products, alleged that PRL USA,

Using Appropriate Comparables in Estimating Lost Profits

Sargon Enterprises, Inc. v. University of Southern California, et al., 55 Cal. 4th 747
Supreme Court of California: Opinion Delivered November 26, 2012
Sargon Enterprises, Inc. (“Sargon”), a small dental implant company with net profits of $101,000 in 1998, sued the University of Southern California (“USC”) for breach of contract for USC’s failure to clinically test a new implant Sargon had patented.