Decosimo Advisory Services• Business Valuation• Litigation Support• Transaction Advisory
Decosimo Corporate Finance• Broker Dealer• Member FINRA/SIPC• Formalization of investment banking services provided by Decosimo CPA firm for more than 35 years: involved in the mergers and acquisitions of five major league baseball teams, more than 100 Coca-Cola bottlers
What We’re Going to Cover• When and how do shareholders realize value?• How is this relevant to attorneys?
Why do people own businesses?• Very simply, to receive the benefits of business ownership• Financial benefits of business ownership come in two forms: – Interim cash flows, in the form of distributions to owners – Value at ultimate sale
Value a Function of Expected Future Cash Flows
Tennessee Valuation Cases• Blasingame v. American Materials – 1983 case that everyone quotes – Affirms use of Delaware Block Method – Questions the consideration of only one year of earnings in a capitalized earnings method
Divorce Valuation Cases• Wright v. Quillen• Harmon v. Harmon• Alsup v. Alsup• Bertuca v. Bertuca• Smith v. Smith• Hazard v. Hazard• Cunningham v. Cunningham• York v. York• Inzer v. Inzer