Business Valuation Cases, IRS Revenue Rulings, Etc.
(Estates/Gifts, Divorce, Shareholder Disputes, Valuation Discounts, etc.)
Inclusion of these business valuation cases on this site does not constitute advice to be applied to any specific situation. No valuation, tax or legal advice is provided herein. Additionally, valuation cases, IRS rulings, and valuation methodologies can change materially over time, including from when a case was issued and may no longer be valid. Furthermore, all cases involved specific facts and circumstances and may not be applicable to other facts and circumstances, purposes, jurisdictions, etc. Readers of these cases should seek the services of skilled and trained professionals. Finally, just because we have a business valuation/appraisal case here does not mean Banister Financial or its professionals necessarily agree with it!
Aggregation of Non-Voting Shares with Voting in Estates (no non-voting discount on non-voting shares when holding controlling voting shares)
Blockage Discounts / Restricted Stock
Built In Gains
Buy-Sell Agreements
Control, But Not Full Control
Covenants Not to Compete
Cyclical Industries
DCF Method
Defined Value Clauses
Expert Testimony
Cases (Federal)
Cases (NC)
Family Limited Partnerships, LLCs
Fair Market Value vs. Strategic Value
Family Law
Buy-Sell Agreements
Equitable Distribution
Practice Goodwill
Subchapter S Corporation Valuation
Standard of Value
Stock Options
Tax Impacts in Equitable Distribution
Fractional Interests in Real Estate
Intrinsic vs. Fair Market Value
Key Person
Life Insurance
Low Dividends
Marketability Discounts
Aggregation of Non-Voting Shares with Voting in Estates (no non-voting discount on non-voting shares when holding controlling voting shares)
Blockage Discounts / Restricted Stock
Built In Gains
- Bolton (US Ct. App)
- Borgatello (US Tax Ct)
- Dunn (US Court App)
- Jelke (US Tax Ct)
- Jelke (US Ct. App)
- Jensen (US Tax Ct)
- Litchfield (US Tax Ct)
Buy-Sell Agreements
Control, But Not Full Control
Covenants Not to Compete
Cyclical Industries
DCF Method
Defined Value Clauses
Expert Testimony
Cases (Federal)
Cases (NC)
Family Limited Partnerships, LLCs
- Dailey (US Tax Ct)
- Estate of W.W. Jones (US Tax Ct)
- Hackl (US Ct. App)
- Hackl (US Tax Ct)
- Holman (US Ct. App)
- Kelley (US Tax Ct)
- Kerr (US Tax Ct)
- Kimball (US District Court)
- Kimbell (US Ct. App. 5th- Circuit)
- Knight (US Tax Ct)
- Lappo (US Tax Ct)
- Murphy (US Dist. Ct)
- Peracchio (US Tax Ct)
- Rosen (US Tax Ct)
- Senda (US Ct. App, 8th Cir)
- Strangi (US Ct. App)
- Strangi (US Tax Court)
- Turner (US Ct. App.)
Fair Market Value vs. Strategic Value
Family Law
Buy-Sell Agreements
Equitable Distribution
- North Carolina General Statute Excerpts (limited excerpts on valuation, valuation date, tax consequences, marital versus separate property, etc.)
Practice Goodwill
Subchapter S Corporation Valuation
Standard of Value
Stock Options
Tax Impacts in Equitable Distribution
Fractional Interests in Real Estate
Intrinsic vs. Fair Market Value
Key Person
Life Insurance
Low Dividends
Marketability Discounts
Minority Interests
Need for Accredited Appraiser
Past Transactions as Evidence of Value
Personal versus Corporate Goodwill
Poorly Supported Valuation
Prearrangements Defeat Discounts
Preferred Stock
Public Co. Selection
Reasonable Compensation
Redemption Price
Restricted Stock Options
Revenue Rulings and Revenue Procedures- Valuation (IRS)
Section 754 Election Impact on Value
Shareholder Disputes and Dissenting Shareholders
Cases (Delaware)
Special Valuation Rules, Internal Revenue Code
Specific Company Risk Premium in Rate of Return
Subchapter S Corporation Valuations
Swing Block Valuation
Time Travel
Valuation Report Content and Related Requirements
Voting, Non-Voting
- Barnes (US Tax Ct)
- Koblick (US Tax Ct)
- McCord (US Ct. App.)
- Mitchell (US Ct. App, 9th Cir)
- Newhouse (US Tax Ct)
Need for Accredited Appraiser
Past Transactions as Evidence of Value
Personal versus Corporate Goodwill
Poorly Supported Valuation
Prearrangements Defeat Discounts
Preferred Stock
Public Co. Selection
Reasonable Compensation
Redemption Price
Restricted Stock Options
Revenue Rulings and Revenue Procedures- Valuation (IRS)
- Revenue Procedure 2003-68 (stock option valuation safe harbor)
- Revenue Ruling 59-60 (valuation of closely held business for gift, estate and other tax purposes)
- Revenue Ruling 68-609 (excess earnings valuation method)
- Revenue Ruling 77-287 (restricted stock)
- Revenue Ruling 83-120 (valuation of preferred stock)
- Revenue Ruling 93-12 (end of family attribution in minority share valuation)
Section 754 Election Impact on Value
Shareholder Disputes and Dissenting Shareholders
Cases (Delaware)
- Delaware Radiology Open MRI v. Kessler (DE Chanc. Ct)
- Global GT LP et al v. Golden Teleocm, Inc. (DE Chanc. Ct)- deals with cost of capital, discount, capitalization rates
- Accuma (NC Ct. App)
- Crowder Construction v. Kiser (NC Bus. Ct)
- High Point Bank & Trust Co v. Sapona (NC Bus. Ct) (the Court puts limits on "reasonable expectations")
- Meiselman v. Meiselman (NC App)
- O. Bruton Smith v. Rockingham Speedway (NC App)
- O. Bruton Smith v. Rockingham Speedway (NC Super Court)
- Potts v. Benett (NC Bus. Ct)
- Royals v. PERCO (NC Bus. Ct)
- Belk of Spartanburg v. Thompson et al (SC App)
- Keane v. Low Country Pediatrics (SC App)
- Kiriakides v. Atlas (SC Supreme Ct.)
- Santee Oil (SC Supreme Ct)
Special Valuation Rules, Internal Revenue Code
Specific Company Risk Premium in Rate of Return
Subchapter S Corporation Valuations
- Adams (US Tax Ct)
- Bernier v. Bernier (MA Supr. Ct) (Family Law)
- Dallas (US Tax Ct)
- DE Radiology Open MRI v. Kessler (DE Chanc. Ct)
- Gross (US Tax Ct)
- Gross (US Court of App)
- Heck (US Tax Ct)
- Sunbelt Beverage (DE Chan. Ct)
Swing Block Valuation
Time Travel
Valuation Report Content and Related Requirements
Voting, Non-Voting
Contact Information for a Business Valuation
George Hawkins, ASA, CFA
Managing Director
Phone: (704) 334-4932
Send e-mail to George
Outlook v card file 
Michael Paschall, ASA, CFA, JD
Managing Director
Phone: (704) 334-4932
Send e-mail to Michael
Outlook v card file 
© 2010, Banister Financial, Inc. Fair Value is a registered trademark of Banister Financial, Inc.