Corporate Valuations Inc. maintains this comprehensive knowledge base of landmark court cases, IRS revenue rulings, and professional standards that form the foundation of modern business valuation practice. With over 40 years of experience, our team draws on these authorities daily to produce defensible, well-supported valuations.

Valuation Approaches & Methods

The three fundamental approaches to business valuation, each with specific court-tested applications and methodologies.

Market Approach

Court cases addressing comparable company analysis, guideline transactions, and market-based valuation multiples. Key cases include Huber, Kaufman, and Estate of Joyce V. Hall.

Income Approach

Precedent on discounted cash flow analysis, capitalization of earnings, and the excess earnings method. Including Hess, Sunbelt Beverage, and Revenue Ruling 68-609.

Cost Approach

Asset-based valuation cases covering adjusted net asset value, liquidation value, and intangible asset considerations. Including Bolton, Borgatello, Dunn, and Jelke.

Valuation Discounts

Court-established precedent on the application and quantification of valuation discounts, a critical component in private company and minority interest valuations.

Business Valuation Discounts

Landmark cases on discount for lack of marketability (DLOM), discount for lack of control (DLOC), and combined discount applications. Including Mandelbaum factors and restricted stock studies.

FLP & LLC Discounts

Cases specific to family limited partnerships and limited liability companies, covering entity-level discounts, assignment restrictions, and IRS challenges to discount levels.

Blockage & Restricted Stock Discounts

Cases addressing discounts for large blocks of stock and SEC-restricted securities. Including Gimbell, Mellinger, and Murphy.

IRS Revenue Rulings & Procedures

Authoritative IRS guidance that establishes standards and methodologies for business valuations in tax-related matters.

Revenue Ruling 59-60

The foundational IRS ruling establishing eight factors for valuing closely held business stock. Considered the “valuation bible” for tax-related appraisals.

Revenue Ruling 68-609

The IRS formula approach for valuing intangible assets using the excess earnings method (also known as the Treasury Method).

Revenue Ruling 77-287

Guidance on valuation of restricted securities and the application of marketability discounts for letter stock and other restricted shares.

Revenue Ruling 83-120

Factors for valuing preferred stock, including dividend yield, coverage, and protection provisions in recapitalization transactions.

Revenue Ruling 93-12

The ruling that established minority discounts apply even when family members collectively own a controlling interest.

Specialized Topics

Standard of Value

Cases defining and distinguishing fair market value, fair value, investment value, and other standards applied in different legal and regulatory contexts.

Subchapter S Corporations

Valuation issues unique to S corporations including the tax-affecting debate, S corp premium, and cases addressing pass-through entity valuation.

Stock Class, Block & Options

Cases addressing valuation of different equity classes, large block discounts, and stock option pricing considerations.

Non-Voting Shares

Precedent on valuing non-voting equity interests and the differential between voting and non-voting share values.