Case Law
"Shannon Pratt is perhaps the most credentialed of all experts in the field of business valuation…"
"Pratt's methods are well-reasoned and form the basis of nationally recognized reference and text books that provide thorough guidance on the subject of valuation of small businesses."
—Anderson v. United States, 2005 U.S. Dist. LEXIS 39573; 2006-1 U.S. Tax Cas. (CCH) P60,516 (W.D. La. 2005).
"Dr. Shannon Pratt [is] the author of the leading treatise concerning valuations of closely-held corporations."
"Defendants' valuation expert, Dr. Shannon Pratt's trial testimony was compelling and persuasive. Particularly instructive and persuasive was Dr. Pratt's testimony criticizing the valuation technique and assumptions relied upon by plaintiffs' expert…."
—Howard v. Shay, 1998 U.S. Dist. LEXIS 23146 (C.D. Cal. 1998).
In preparing his testimony, [the expert] consulted Dr. Shannon Pratt's Valuing a Businsess…considered a "bible" in the business.
—Ostrow v. Bonney Forge Corp., 1994 Del. Ch. LEXIS 39 (Del. Ct. Ch. 1994).
"The leading authorities on business valuation includ[e] the authority most cited by the parties, Dr. Shannon Pratt…."
—In re Med Diversified, Inc., 334 B.R. 89; 2005 Bankr. LEXIS 2236 (Bankr. E.D.N.Y. 2005).
"Both [parties] relied on the work of Shannon Pratt, an expert recognized as an authority on business valuation."
—Wright v. Wright, 904 P.2d 403 (Alaska 1995).
"Pratt [is] a leading authority in business valuation…"
—Northwest Investment Corp. v. Wallace, 741 N.W.2d 782, 2007 Iowa Sup. LEXIS 87 (Iowa 2007).
"Defendants' eminently qualified expert witness [is] Dr. Shannon Pratt…"
—Howard v. Shay, 1993 U.S. Dist. LEXIS 20153 (C.D. Ca 1993).
"He relied on a publication written by Shannon Pratt (Valuing A Business: Analysis & Appraisal of Closely Held Corporations…), which, he testified, was a commonly recognized source of methodology for valuing small and professional businesses."
—In re Marriage of Gunn, 598 N.E.2d 1013, 1992 Ill. App. LEXIS 1362 (Ill. Ct. App. 1992).
"Shannon Pratt [is] the leading authority on [business valuation]"
—Lawton v. Nyman, 2002 U.S. Dist. LEXIS 17398 (D.R.I. 2002).
Refers to Dr. Pratt’s Valuing a Business: The Analysis and Appraisal of Closely Held Companies as "a leading treatise" and also cites Dr. Pratt’s Market Approach to Valuing Businesses and Business Valuation Discounts and Premiums.
—Floorgraphics, Inc. v. News Am. Mktg. In-Store Servs., 2008 U.S. Dist. LEXIS 8263 (D.N.J. 2008)
Refers to Dr. Pratt's Valuing Small Businesses and Professional Practices as a "leading treatise," and rules that a portion of Dr. Pratt's Cost of Capital: Applications and Examples is admissible.
—Baldwin v. Bader, 2008 U.S. Dist. LEXIS 56236; 77 Fed. R. Evid. Serv. (Callaghan) 97 (D. Me. 2008).
Refers to Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies and to his Business Valuation Discounts and Premiums.
—Shawnee Telecom Res., Inc. v. Brown, 354 S.W.3d 542; 2011 Ky. LEXIS 159 (Ky. 2011).
Citing Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies; Cost of Capital: Applications and Examples; and The Lawyer's Business Valuation Handbook.
—In re Appraisal of the Orchard Enters., 2012 Del. Ch. LEXIS 165 (Del. Ct. Ch. 2012).
Citing Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies; Cost of Capital: Applications and Examples; and his article on "Valuers Should Lower Equity Risk Premium Component of Discount Rate," Business Valuation and Resources, BUSINESS VALUATION UPDATE (Nov. 2003)
—Global GT LP v. Golden Telecom, Inc., 993 A.2d 497 (Del. Ct. Ch. 2010).
Refers to Dr. Pratt's position on the size premium.
—Nelson v. Walnut Inv. Partners, L.P., 2011 U.S. Dist. LEXIS 75534 (S.D. Ohio 2011).
Both sides' experts cited Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies.
—Probate Court of Warwick v. Bank of Am. Corp., 2010 U.S. Dist. LEXIS 37125 (D.R.I. 2010).
Refers to Dr. Pratt as an "authoritative commentator," and cites The Lawyer's Business Valuation Handbook.
—Berger v. Pubco Corp., 2010 Del. Ch. LEXIS 110 (Del. Ct. Ch. 2010).
Witness refers to Dr. Pratt's Valuing Small Businesses and Professional Practices as "widely recognized in the appraisal profession."
—City of S. Gate v. S&M Auto, 2012 Cal. App. Unpub. LEXIS 1396 (Cal. Ct. App. 2012).
Quoting Northwest Investment Corp. v. Wallace, 741 N.W.2d 782, 2007 Iowa Sup. LEXIS 87 (Iowa 2007), which cites to Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies.
—Baur v. Baur Farms, Inc., 2010 Iowa App. LEXIS 117 (Iowa Ct. App. 2010).
Citing Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies, and The Lawyer's Business Valuation Handbook.
—Levinhar v. MDG Med., Inc., 2009 Del. Ch. LEXIS 199 (Del. Ct. Ch. 2009).
Additional cases citing Dr. Pratt's Valuing a Business: The Analysis and Appraisal of Closely Held Companies:
—Alberts v. HCA, Inc. (In re Greater Southeast Cmty. Hosp. Corp.), 2012 Bankr. LEXIS 618 (Bankr. D.D.C. 2012).
—In re Bond, 2012 Bankr. LEXIS 4107 (Bankr. D. Ariz. 2012).
—Pryor v. IAC/InterActiveCorp, 2012 Del. Ch. LEXIS 132 (Del. Ct. Ch. 2012).
—In re PTL Holdings LLC, 55 Bankr. Ct. Dec. 206 (Bankr. D. Del. 2011).
—Reis v. Hazelett Strip-Casting Corp., 28 A.3d 442 (Del. Ct. Ch. 2011).
—Estate of Cohen ex rel. Perelman v. Booth Computers, 421 N.J. Super. 134, 22 A.3d 991 (N.J. App. Div. 2011).
—Maric Capital Master Fund, Ltd. v. Plato Learning, Inc., 11 A.3d 1175 (Del. Ct. Ch. 2010).
—WaveDivision Holdings, LLC v. Highland Capital Mgmt. L.P., 2010 Del. Ch. LEXIS 194 (Del. Ct. Ch. 2010).
—In re Portec Rail Prods., Inc. Shareholders Litigation, 2010 Pa. Dist. & Cnty. Dec. LEXIS 157 (Pa. Ct. Com. Pl. 2010).
—Gremillion v. Nashville Gastrointestinal Specialist, Inc., 2009 Tenn. App. LEXIS 149 (Tenn. Ct. App. 2009).
—EBC I, Inc. v. Am. Online, Inc. (In re EBC I, Inc.), 380 B.R. 348 (Bankr. D. Del. 2008).
—Alberts v. HCA, Inc. (In re Greater Southeast Cmty. Hosp. Corp.), 2008 Bankr. LEXIS 1607 (Bankr. D.D.C. 2008).
—Wechsler v. Wechsler, 2008 NY Slip Op 7983, 58 A.D.3d 62, 866 N.Y.S.2d 120, 2008 N.Y. App. Div. LEXIS 7822 (N.Y. App. Div. 2008).
Cases citing Dr. Pratt's Valuing Small Businesses and Professional Practices:
—Spectrum Scis. & Software v. United States, 98 Fed. Cl. 8 (Fed. Cl. 2011).
—Matter of Murphy v. United States Dredging Corporation, 2008 NY Slip Op 31535U (N.Y. Sup. Ct. 2008).
Additional cases citing Dr. Pratt's books:
Citing The Lawyer's Business Valuation Handbook.
—Avnet, Inc. v. H.I.G. Source, Inc., 2010 Del. Ch. LEXIS 205 (Del. Ct. Ch. 2010).
Citing Standards of Value: Theory and Applications.
—Fisher v. United States, 82 Fed. Cl. 780 (Fed. Cl. 2008).