James Hollis sought a court-ordered buy-out of his 50% interest in a Nevada corporation. In a bench trial in Judge Lynn Hughes’ district court, the court found that Dan Hill, holder of the other 50% interest, breached the fiduciary duty he owed to Hollis and ordered a buy-out of Hollis’ shares based on Rob Hancock’s […]
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Best Redi-Mix is a successful provider of concrete to customers in the greater Houston area for 25 years. Under the leadership of its founder, Roger Bertling, Best Redi-Mix has grown to several locations with 85 employees, with more than 60 mixing trucks providing concrete to contractors who serve the commercial, governmental and residential markets. In […]
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ADS was the premier commercial oilfield waste management company in Texas. ADS had state-of-the-art well-injection disposal locations throughout the major oil plays in Texas and Louisiana serving almost every major operator. ADS had daily permitted capacity to inject over 100,000 barrels of non-hazardous oil & gas fluids including salt water, flowback fluid, oil dirty water, […]
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SGG is a sales, service and installation dealership for standby power generation for residential, commercial and industrial use. SGG and one of its partners went to district court to resolve a dispute. Shea Hancock testified in district court on the fair market value of SGG, and other related matters. After a complete trial, the jury […]
Read MoreThe issue of solvency, and insolvency, frequently arises in bankruptcy matters where a claim is made that one party (the debtor) made a transfer (while insolvent, or which transfer caused insolvency) with the intent to hinder, delay or defraud a creditor. Of course, the debtor typically claims that the transfer was made in good faith […]
Read More1. THE TAX RULES: The tax rules did not allow amortization (i.e. the ratable expensing/deducting) of Goodwill until 1993 (actually, after 8/10/93). With minor exception due to transition tax laws in 1993, if a taxpayer made an acquisition prior to 1993 that gave rise to Goodwill, the Goodwill was not deductible and was forever left […]
Read MoreIndividuals and legal entities that own interest in businesses find it relatively easy to separate the various rights that ownership in an entity represents. One example of such a division is the transfer of voting rights in common stock from the individual owner of the common stock to another party. This can be done by […]
Read MoreThe Hancock Firm regularly values debt issued by privately-held companies and other commitments or contingencies involving the private company. When the subject company has financial statements that have been reported upon by independent accountants or auditors, substantive insights into the obligations or alleged obligations may be ascertained. For example, take the following edited excerpt from […]
Read MoreWhether valuators of businesses should “tax-affect” or “not tax-affect” an S corporation’s earnings is a controversial issue. The Internal Revenue Service is increasingly scrutinizing taxpayers and their business valuators fail to address the tax-affecting issue in valuations of S corporations. Any valuation of an S corporation (or other pass-through entity) should consider specific adjustments that […]
Read MoreThe 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 […]
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