Valuation: The “Eye of the Beholder” Causes Disputes

On December 17, 2020, from 12:00 p.m. – 1:00 p.m. CT, Anne Lockner and Richard Zabel delivered a webinar presentation, “Valuation: The ‘Eye of the Beholder’ Causes Disputes.”

The need to value closely held corporations and associated real estate frequently arises in the context of disputes within closely held corporations and estate administration. The value of such assets, however, is often fogged by the differing perceptions of the various stakeholders. Disputes in valuation of these assets can occur due to differing perceptions about how to value the business and the “eye of the beholder” of different stakeholders. Presenters examined the three general approaches to valuation of a closely held business, along with the effects of several other factors in determining a valuation. They also discussed when it is beneficial to separate a business from its real estate to achieve alternative goals.