It’s time once again for the quarterly edition of Insights, PYA’s newsletter featuring information on valuation, forensic accounting, and litigation consulting topics. Click here to view your complimentary copy of Insights.
Featured articles include:
Can a Restaurant Have Personal Goodwill?
For over 25 years, Arkansas courts recognized a tight “professional license goodwill” exception in divorce cases. It applied primarily in cases involving professional partnerships such as medical and dental offices and treated the professional spouse’s personal goodwill as his or her separate property for the purpose of dividing marital property. But a recent appeal in which the co-owner and chef of a successful restaurant claimed that the business’s goodwill was personal to him and, therefore, non-marital property sought to expand the scope of the exception.
Experts Propose Equally Sound, but Diverging Valuations
A recent divorce case featured two business appraisers valuing the husband’s telecommunications business. Using the same methodology and data, both arrived at an $80,000 difference in value based on their divergent treatment of one of the performance years under review and their choice of capitalization rate. The appellate court found that both witnesses gave “reasoned explanations for their valuations”—but one was more persuasive.
For more information on PYA’s Valuation and Litigation Services, please contact the experts listed below at PYA, (800) 270-9629.
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