Erickson Partners, LLC | Dallas, Texas Business Valuation Services Firm

Bertuca v. Bertuca, 2007 Tenn. App. LEXIS 690 (November 14, 2007)

Five years before this Tennessee couple divorced, the husband formed a partnership with his father to acquire and operate McDonald’s franchises in their mid-Tennessee region. The husband owned a 90% interest, but both partners had equal management rights, including any decision to sell. Their buy-sell agreement set a purchase price at book value; or, alternatively, the partners could liquidate.

Continue Reading »

By Gilbert Matthews, CFA

The recent statutory appraisal of Dr Pepper Bottling Holdings, Inc. (“Holdings”) by the Delaware Chancery Court in Crescent/Mach I Partnership v. Turner 1 raises several conceptual and computational issues concerning discounted cash flow (DCF) valuations in an appraisal context. An analysis of the Court’s calculations reveals the caution with which valuation practitioners should apply the DCF method, and the enduring benefit of using comparable market analyses as a reasonableness check.

Continue Reading »