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Business Valuations Business Divorce

Bradley Arant Boult Cummings LLP

The Intersection of Business in Marital Divorce Cases: Business Issues That Often Arise in Family Law Proceedings 

When divorcing couples hold ownership interests in private companies as part of their marital estate, they will have to address a number of business issues related to these interests in their divorce settlement. Planning...more

Farrell Fritz, P.C.

When Law Firms Break Bad: The Valuation Battle Over Contingency Fees and Crypto Tokens

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As both a practitioner and a close follower of New York business divorce caselaw, I’ve seen a recent uptick in disputes centered on the breakup of professional services firms and cryptocurrency businesses. Perhaps the crypto...more

Farrell Fritz, P.C.

Your Business Appraiser Relied on What!? Lessons from a Mostly-Decided Motion to Preclude

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One of the best parts of being a business litigator is the frequent opportunity it affords to work with (and against) expert witnesses of all stripes. And perhaps because there are so many ways that a business divorce can...more

Farrell Fritz, P.C.

Your Business Appraiser Relied on What!?  Lessons from a Mostly-Decided Motion to Preclude

Farrell Fritz, P.C. on

One of the best parts of being a business litigator is the frequent opportunity it affords to work with (and against) expert witnesses of all stripes. And perhaps because there are so many ways that a business divorce can...more

Bradley Arant Boult Cummings LLP

Time to Sell? Are You and Your Company Prepared to Go After the Elusive Pot of Gold?

After devoting long hours and years of hard work in building their companies, majority owners of private businesses may reach a point where they consider whether it is time for them to sell. This large question – Is now the...more

Farrell Fritz, P.C.

And the Award for Most Creative Attempt to Evade a Book Value Buy-Sell Provision Goes To . . .

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“Under any standard of value, the true economic value of a business enterprise will equal the company’s accounting book value only by coincidence . . .” says the late business valuation expert and author Shannon Pratt.  So...more

Conyers

Can the Family Business be Divided in Divorce Proceedings?

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In Bermuda, it is not uncommon for divorcing couples to own a business together. The couple may be equal partners in the business, bringing different skills. One person might be the inspiration behind the business or the...more

Bradley Arant Boult Cummings LLP

Successfully Dividing Business Assets in a Marital Divorce: Creative Options for Valuing and Dividing Private Company Interests

Marital divorces are often difficult under the best of circumstances, but tensions may be even higher when the marital estate includes substantial interests the married couple own jointly in private companies, which they are...more

Bradley Arant Boult Cummings LLP

You Want to Sell Your Business for What? Securing a Beautiful Sale Price at Closing 

We accept that beauty is in eye of the beholder but determining what a private company is worth should be much more objective. Yet, for a business owner who is considering a sale of the company, it may come as a surprise that...more

Farrell Fritz, P.C.

Clash of Valuation Visions: Appraisal Proceeding Over Manhattan Eyeglass Shop Goes the Distance

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The authors of this blog have a special affinity for fair value appraisal proceedings.  The narrow hearings—where the sole issue before the court is the fair value of an owner’s interest in a business—require attorneys and...more

Farrell Fritz, P.C.

Valuation Decision Finds LLC “Worthless, Worthless, Worthless”

Farrell Fritz, P.C. on

Justice Masley’s valuation decision in Quattro Parent LLC v Rakib, 2022 NY Slip Op 30190(U) [Sup Ct, NY County Jan. 14, 2022] is noteworthy for two reasons. First, it is an extraordinarily rare example of a business...more

JAMS

The Top Five Issues in Startup Co-Founder Separations

JAMS on

Most businesses start with a group of dedicated people identifying a problem, coming up with a solution and then figuring out how to share their solution with the world. Launching a business takes vision, vulnerability, grit,...more

Farrell Fritz, P.C.

General Partner Breached Implied Covenants in Partnership Agreement, but Plaintiff’s “Apples-to-Oranges” Calculation Dooms Bid for...

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In most of the business valuation cases that I’ve litigated, it’s not long before one side accuses the other’s valuation expert of mixing apples and oranges.  And at the risk of endorsing the overused expression, it’s easy to...more

Farrell Fritz, P.C.

Business Divorce Nation: A Cross-Country Tour of Recent Decisions of Interest

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There’s tremendous diversity from state-to-state when it comes to statutory and judge-made law in business divorce cases. The basic fact patterns one sees in cases from across the country, however, don’t vary nearly as much....more

Farrell Fritz, P.C.

$30 Million Appraisal of Plumbing Fixtures “Marketeer” Goes Down the Drain at Fair Value Hearing

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Three shareholders co-own an 8-year old internet-based “marketeer” business that imports Chinese-manufactured sinks, faucets, and related plumbing fixtures that it sells primarily to distributors and retailers in the United...more

Farrell Fritz, P.C.

Buy-Sell Agreements Are Supposed to Deter Litigation, Not Foment It

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Two of my pet topics — dysfunctional buy-sell agreements and application of federal court abstention doctrine in private company disputes — intersect in a decision issued last month in Ray v Raj Bedi Revocable Trust, Case No....more

Farrell Fritz, P.C.

Post-Valuation Date Distributions: Should They Be Credited Against Fair Value Awards?

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In my business divorce travels occasionally I encounter instances in which shareholder distributions are made in the period between the valuation date for an elective buyout of a minority shareholder who sued for dissolution...more

Winstead PC

Maximizing Private Company Value in Divorce: Achieving a Successful Business Divorce When the Marriage Fails

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Navigating a successful business exit when a marriage ends in divorce often presents challenges for both parties. Leaving aside the emotional tensions present in divorce, resolving conflicts regarding the ownership of...more

Farrell Fritz, P.C.

How to Initiate a Fair Value Appraisal Proceeding – a Dissenter’s Checklist

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Over the years, we’ve written a lot about limited partnership, corporation, and LLC “fair value” appraisal proceedings....more

Farrell Fritz, P.C.

A Cross-Country Tour of Five Recent Stock Appraisal Cases

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When it comes to business valuation principles in contested appraisal proceedings, I’d say the 50 states have far more in common than separates them. Certainly this is true in cases applying the fair market value standard...more

Farrell Fritz, P.C.

Another Reason Not to Use Fixed Price Buy-Sell Agreements

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Before we get to the case: A fixed price buy-sell agreement is one in which co-owners of a business select a specific dollar amount, expressed either as enterprise or per-share value, for calculation of the future buyout...more

Farrell Fritz, P.C.

Top Ten Business Divorce Cases of 2018

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I’m very pleased to present my 11th annual list of this past year’s ten most significant business divorce cases. This year’s list includes four important appellate decisions, including one likely to stand as a landmark...more

Farrell Fritz, P.C.

Basics of Valuation Proceedings – Litigating an Appraisal from Start to Finish – Part 3

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This is the final installment of a three-part series about the basics of contested New York business appraisal proceedings. The first post addresses the various ways in which business owners can steer a dispute into an...more

Farrell Fritz, P.C.

Summer Shorts: Partnership Appraisal and Other Recent Decisions of Interest

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The dog days of August are upon us, a perfect time as I do each year to offer vacationing readers some lighter fare consisting of summaries of a few recent decisions of interest involving disputes between business co-owners....more

Farrell Fritz, P.C.

Episode 015: Confessions of a Business Appraiser: A Conversation with Chris Mercer

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In this episode of the Business Divorce Roundtable, Chris Mercer, one of the country’s leading business appraisers as well as a prolific author and frequent lecturer, shares what he calls “Confessions of a Reluctant Expert...more

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