Valuing a professional practice – Court prefers excess earnings method in divorce case

Description

Abstract: Experts on opposing sides commonly rely on different methods when valuing a business. But that doesn’t mean all methods are equally valid. The particular circumstances — including the type of litigation and kind of business — may dictate that one method is preferable to the other. This article discusses one divorce case in which the court found that the excess earnings method was superior to the price-to-revenue method in valuing a dental practice.