HINDSIGHT SHOULD NOT BE THE BEST SIGHT

The courts, especially the Tax Courts, have frequently employed hindsight to help establish and adopt fair market values for businesses and assets. Hindsight evidence is facts and circumstances that only became known after the valuation date. In many cases, the courts have taken such actions because the business valuator (or real estate appraiser) brought to the court an inadequate report on fair market value. The court, faced with a void in reliable and credible valuation information, had to make a reckoning of value. The court reckonings were, sometimes, based on incomplete and irrelevant valuation facts. Many times, the courts have used flawed valuation.