Valuation Litigation Support

Valuation Litigation Support

By Admin July 29, 2016

What Business Leaders Should Know About Valuation Litigation Support

Litigation and legal issues are just some of the stresses that come with being a business leader in today’s world.  When it comes to valuation, there are specialists who can help when an issue arises where a valuation is called into question.  Litigation Support is often called upon anytime your company is involved in a legal proceeding where an accounting practice or valuation is being examined.  There are different processes of resolution your firm could be go through including mediation, arbitration, judge, or jury trial. No matter the situation, the experience of a reputable firm will be key in getting the best outcome for you and your company.

A Stitch in Time Saves Nine

The best defense is prevention of the problem in the first place. Choosing a reputable firm to perform your valuation provides a good measure of protection.  Such firms should understand what auditors will expect and emphasize on any given valuation and take the appropriate measures to protect against any assumptions that can’t be supported with good evidence.  The firm chosen for your valuation should have a track record of successfully defending its work against the rigorous review of auditors and investors.  

So You Are in a Lawsuit

However, for some, prevention is no longer an option as lawsuits have already been filed against you and/or your company.  When such situations arise, it is critical that the business owner first talk with the firm that performed the valuation to understand all of the assumptions and methodologies that were used.  In most cases the most prudent option is to call upon the firm that performed the valuation to give an expert  testimony in the case.  However, when the firm has little reputation or lacks experience defending a valuation in court, firms that have expertise in valuation litigation  may provide the needed support.

When selecting a firm to be an expert witness in a legal proceeding, successful experience is the most important factor to consider.  A firm that has an understanding of the examination process and that has been tried and tested in court will provide more security than a firm that has never experienced a courtroom.  A reputable firm will be able to help identify the strengths and weaknesses in your case and will be best at clearly communicating an overview of the case.  

In preparing for litigation it is important to take the time necessary to ensure that the firm you have chosen to assist in the process possesses a clear understanding of the situation.  In order to best accomplish this, the firm will need to be provided any documents related to the lawsuit.  These documents include but are not limited to: historical financials, projections, any kind of documentation of discussions with the firm that performed the valuation in question, contracts, engagement letters, etc.  Anything that can give perspective and understanding will be key in resolving the litigation issue for your company.

Litigation can be a stressful time, but with the help of an experienced firm your case can be handled a professional manner, with the valuation firm assisting you to reach the best possible resolution.

Additional Resources:

https://www.gentrylocke.com/business-valuations-in-litigation-101-a-basic-guide/

http://abovethelaw.com/2016/07/finance-and-law-how-to-critique-a-valuation-model-in-court/