Do Court Preferences for Valuation Approaches of Closely Held Companies Vary by Industry?
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James A DiGabriele
This study investigates whether the valuation approaches for closely held companies preferred by courts vary by industry type. Our difference of means tests find that income valuation approaches are preferred by courts over either asset or market approaches for cases involving the valuation of manufacturing companies, while market valuation approaches are preferred for cases involving the valuation of holding companies. We do not find any significant differences between companies categorized as tangible and intangible. Our multivariate tests further indicate that income approaches are approximately five times more likely to be preferred for manufacturing companies than other types of companies.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Estimating Capitalization Rates for the Excess Earnings Method Using Publicly Traded Comparables
- Valuing Internet Ventures
- Economic Efficiency and Damage Awards in Personal Injury Torts
- Evaluating Aalto Multicines, S.A. A Foreign Private Company in a Unique Situation
- Do Court Preferences for Valuation Approaches of Closely Held Companies Vary by Industry?
Articles in the same Issue
- Article
- Estimating Capitalization Rates for the Excess Earnings Method Using Publicly Traded Comparables
- Valuing Internet Ventures
- Economic Efficiency and Damage Awards in Personal Injury Torts
- Evaluating Aalto Multicines, S.A. A Foreign Private Company in a Unique Situation
- Do Court Preferences for Valuation Approaches of Closely Held Companies Vary by Industry?
