Potok v. Rebh – What’s the value of personal goodwill?

Description

Abstract: Personal goodwill belongs to employees or shareholders, not companies. But this article examines a recent dissenting shareholder case demonstrating that, when a company is sold, the value of personal goodwill may be limited to the extent that key people enter into noncompete and consulting agreements with the buyer. The case shows that, when one is valuing personal goodwill in dissenting shareholder cases, fairness and reasonableness are overriding concerns. Fred Potok v. Richard Rebh, et al, 2014 Phila. Ct. Com. Pl. LEXIS 318, Sept. 16, 2014. Martin Ice Cream v. Commissioner, 110 T.C.189