By Lewis Tesser, Partner, and Timothy Nolen, Associate
A recent New York County Supreme Court case demonstrates the difficulty of valuing shares of a closely held corporation. The case involved issues of forensic accounting, business law, evidence and civil practice.
The case, Matter of the Determination of the Value of Shares of Harlem River Yard Ventures, Inc., 602341/07, NYLJ 1202510746036 (Sup. Ct. N.Y. County, July 11, 2011), concerned a 4.6 percent shareholder of a property-holding/lease corporation who sought a judicial determination/buyout of the petitioner’s shares. Initially, the Court noted that making conclusions as to future income is “not an easy task.” It then weighed a substantial amount of expert testimony about the value of the property and the corporation’s future income, ultimately determining that the petitioner’s shares were worth almost $3,000,000.
At Tesser, Ryan & Rochman, our attorneys are experienced in working with shareholders, partners and corporate officers seeking to arrive at the appropriate valuations for their investments.