Article on Subsequent Events & Valuation

Espen Robak recently published an Article entitled, The Future Is Now: How to Take Subsequent Events into Account When Determining a Valuation, Tr. & Est. 52 (Feb. 2017). Provided below is an abstract of the Article:

Almost all valuation disputes take place long after the date of valuation. The argument then often turns, not just to the evidence considered by the appraiser or appraisers around the valuation date, but also on what could have or should have been considered. Since all valuations contain an implicit prophecy of the future, few fact finders will agree to ignore completely the actual path of events after the valuation date. After all, many of those events may have been foreseeable on the valuation date, even though the appraiser failed to predict them. 

When is such reliance on subsequent events reasonable and appropriate? And, to what extent? Courts differ greatly in their reliance and weighting of subsequent events. Let’s attempt to tease out some of the finer distinctions between situations in which post-valuation date history will likely be considered and those in which it shouldn’t.