Articles Tagged with company valuation

Value

Sometimes an expert valuation opinion, however well documented, leads to a conclusion that just doesn’t square with reality.  That was the case with an expert opinion in Rughani-Shah v. Noaz, Docket No. A-4943-08T2 (Sept. 16, 2011) that valued a one-third interest in a medical practice at just $25,000.  The trial court’s decision was affirmed by the Appellate Division of New Jersey Superior Court.

The trial judge didn’t buy it – not when the practice was grossing $1.7 million a year and not when the buy-in for the shareholder seeking the buyout had been eight times that amount.  Common sense said the number was just too low, and the expert’s opinion was rejected.

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