This week’s post is about a very recent statutory fair value case involving a real estate holding company in New York. The case settled, favorably for the plaintiff/shareholder, after opening arguments at the beginning of trial. The key business valuation question was that of the appropriate marketability discount in a New York fair value determination. All the arguments are shared and analyzed. If you were the holding company, would you have settled?
In May, I’ll be speaking at the AAML/BVR National Divorce Conference in Las Vegas. My topic is “How to Present Complex Finance to Judges.” Given that every divorce trial I’ve seen has been a bench trial, the topic focuses on judges. However, many of the same presentation techniques are certainly applicable to juries, as well.
The idea for this post is simple. I’m asking readers to provide me with examples of the best demonstratives they have seen to present complex financial and valuation issues in court. I’ll also be talking about concepts and ideas, so any thoughts regarding conceptual approaches or philosophical approaches to court testimony would also be helpful.
At the end of every year, I try to make time for introspection and thinking about the future. When the mind is open, many things are possible. Last night, while sleeping, I dreamed about priorities in a variety of ways. When I awoke, the thought at the forefront of my mind was: dream it, think it, and do it, now.
Those who know me understand that I have a “thing” about counting steps. For years, my goal has been a minimum of 10,000 steps per day. In spite of my “thing,” when I looked at my steps for October, I found that I hit 10,000 steps on only 20 of 31 days. My average step count was about 7,000 steps on the days I didn’t reach the goal. On the last day of October, I set a challenge for myself — to achieve a minimum of 10,000 steps every day during the month of November.
Last week, I gave a presentation titled “Intrinsic Value and Valuation Multiples” to a conference held by the Fairfax County (Virginia) Bar Association at the Omni Hotel in Nashville. My presentation discussed the intrinsic value standard of value in Virginia divorce-related valuations of closely held business assets. In addition, I talked about developing valuation multiples with credibility. This post addresses the intrinsic value standard of value.
Many years ago, I worked at what was then First Tennessee National Corporation, which is now First Horizon. My first and only boss during my tenure at First Tennessee taught me many things as a young analyst. Today’s lesson has to do with borrowing, this is a lesson that could be instructive for many owners of private businesses who may be averse to borrowing.
I wrote a memo, titled “ABZs of Solid Valuation Conclusions and Reports,” for Mercer Capital’s analytical staff in 1989. The introduction and conclusion to this memo were written for its republication in Valuing Financial Institutions, my first book, published in 1992. The memo is reproduced as written with the exception of a few [explanatory comments]. Nevertheless, I believe that this 1989 memo is worth the time to read or reread as we think about developing solid valuation conclusions and reports in 2018.
Video depositions, which were an infrequent event during my career for many years, are being used much more frequently these days. I’ve had depositions taken by video on many occasions to date. Until last week, I had never seen myself on the screen at a trial. I’ve only ever seen a video clip of another expert’s deposition one time, which was quite a few years ago.