Bohac v. Benes Service Co. – Is the asset-based approach relevant for going concerns?
Abstract: The appropriate technique for valuing a business depends on a variety of factors, including the type of business, its plans for the future and the valuation’s purpose. This article summarizes a recent Nebraska Supreme Court ruling that called for an asset-based (or cost) approach to value a business that’s a viable going concern. A sidebar explains how the standard of value in dissenting shareholder cases usually differs from the IRS’s definition of fair market value. Bohac v. Benes Service Co., No. S-21-133 (Neb. Jan. 14, 2022).