In U.S. Tax Court, a Cornerstone Research expert provided testimony on valuing a noncompete agreement between a privately held company and its former chief operating officer.
Retained by Fox Rothschild
In U.S. Tax Court, a Cornerstone Research expert provided testimony on valuing a noncompete agreement between a privately held company and its former chief operating officer. The agreement was part of a transaction in which the company repurchased the former officer’s minority equity interest in the company. However, the noncompete agreement was not assigned a specific value at the time of the transaction. Recognizing that traditional valuation techniques were of limited use, our expert conducted a Monte Carlo simulation to estimate the value of the noncompete agreement at the time the company repurchased the interest held by the officer.