News Blog

Valuation Services Bulletin - Fall 2013

Posted 8:50 PM by

In This Issue:

The ESOP Opportunity
Business owners can use Employee Stock Ownership Plans (ESOPs) as part of their succession planning strategy. As a tax-advantaged alternative to third party sales, a sale to an ESOP should be considered by a business owner assessing their succession planning options. 
By Andrew J. Manchir, ASA, CMA

Court Affirms No Portion of Value Is Attributable to Personal Goodwill
The husband was an anesthesiologist in a large practice with 68 partners. The total number of partners had remained fairly stable, with every partner holding an equal ownership interest. However, under an operating agreement, they received unequal distributions based on a formula (which the opinion does not provide).

25 Percent Rule Does Not ‘Irretrievably Damage’ Royalty Analysis
The plaintiff developed technology for reducing acoustic feedback in a digital hearing aid. In 2005, it sued the defendants for infringing two of its patents. At trial before the federal district court in 2007, the plaintiff’s expert calculated reasonable royalty damages using at least two different approaches.

Bogdanski Compares Recent ‘Baffling’ FLP Rulings
Professor John Bogdanski (Lewis & Clark Law School) was interviewed about recent developments in federal tax valuation.


Katz, Sapper & Miller’s Valuation Services Bulletin is a quarterly newsletter that focuses on the latest developments affecting business litigation, marital dissolution and estate and gift tax.