This course will focus upon the valuation of interests in real property and closely-held businesses. The valuation principles to be examined apply in business and economic damages litigation, private property rights disputes, eminent domain proceedings, family law disputes, securities and insurance actions, and almost every other type of litigation which involves a determination of the value of, or damage to, an interest in real property or in a business enterprise. The same principles apply in a wide range of business transactions including mergers, acquisitions, financing and estate planning. This introductory valuation and damages course is specifically designed for prospective real estate, land use, corporate, tax and trial attorneys who anticipate practice in the real estate or business law fields. With respect to real estate valuation, the entire appraisal process will examined, including the provisions to the Uniform Standards of Professional Appraisal Practice (USPAP). The three methodologies for valuing interests in real property (cost analysis, sales comparison analysis, and income analysis) will each be explored. Special issues, such as the valuation of leasehold interests will also be discussed. With respect to business valuation (including the valuation of professional practices), the course will examine the different standards of value, the compilation and analysis of necessary financial information, and the different methodologies available to assist in the valuation process. Among the specific methodologies which will be discussed will be the guideline publicly traded company method, the capitalized excess earnings method, and capitalized economic income methods. Discounts for lack of control and lack of marketability will also be discussed. Key cases and Revenue Rulings will also be reviewed. One class session may be devoted to a demonstration courtroom examination of a prominant business valuation expert. The course will also include an introduction to the use of financial statements and mathematics in business law. No prior accounting or mathematics training is required.
Shannon Pratt & Alina V. Niculita, The Lawyers Business Valuation Handbook (Second Edition 2010).
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