This is the second of a two-part series where we focus on navigating business valuation complexities in litigation. In this article we discuss multiple valuation dates and opposing expert reports.
This is the second of a two-part series where we focus on navigating business valuation complexities in litigation. In this article we discuss multiple valuation dates and opposing expert reports.
In this article we explore the necessity for detailed forensic investigation to uncover any concealed financial strategies or irregularities that may be deployed in anticipation of a divorce. The stakes are high, and the methods can be intricate, hence the essential role played by financial experts in ensuring accuracy and fairness in the equitable distribution of marital assets.
Determining the value and classification of financial assets can be challenging during a divorce proceeding. The value of a couple’s closely held business could be the most valuable asset in the marital estate. If the business was owned prior to marriage, the identification and quantification of any appreciation as active or passive could be critical to the overall marital value placed on that asset.
Valuation of a business can be a complex process requiring accredited business valuation professionals. Valuations of a closely held business in the context of a divorce are typically multifaceted. Business valuations are a vital element of the marital dissolution process as the value of a business, or interests in a business, impact the marital balance sheet and the subsequent allocation/distribution of marital assets. In this article, we introduce the three valuation approaches and discuss the importance of normalizing adjustments to the subject company’s income statement.
Business owners and their professional advisors are occasionally perplexed by the fact that their shares can have more than one value. This multiplicity of values is not a conjuring trick on the part of business valuation experts, but simply reflects the economic fact that different markets, different investors, and different expectations necessarily lead to different values. Business valuation experts use the term “level of value” to refer to these differing perspectives.
This article discusses the concept of fair market value and its various effects. First, we explain what fair market value means. Then, we explore the hypothetical negotiations between potential buyers and sellers when determining fair market value and the implications of these discussions.
Finally, we examine the impact on the so-called “marketability discount for controlling interests” by analyzing this “discount” from three perspectives: the meaning of fair market value, the integrated theory of business valuation, and the recurring and incorrect rationales for this discount.
In each “Meet the Team” segment, we highlight a different professional on our Family Law team. This segment we highlight Timothy Lee. Tim is the Managing Director here at Mercer and is a member of the firm’s board of directors.
To celebrate a new year and everything that comes with new beginnings, the Mercer Capital Litigation Support Services Team has decided to start the year with a blog emphasizing the importance of the beginning of a family law engagement, defining the assignment.
In-person conferences are back in 2022 and so are we. Our professionals have been speaking at and attending numerous conferences, so we thought it a good idea to reflect on a few of these conferences and share selected PowerPoint decks with you. Why? Because there are valuable materials on valuation, forensic and financial topics included in these PowerPoint decks.
What is normal? A question we seem to have been asking ourselves for the last few years. When it comes to making sense of the “normal” in this new day and age, we cannot offer any advice there. But we can speak on the process and importance of normalizing financial statements for a business valuation.
In contested cases where a business interest comprises a significant portion of a divorcing couple’s net worth, it is common for one or both parties to retain a business appraiser to value the business. Post-divorce, if only one spouse retains an interest in the business, all else equal, a higher business interest value typically implies the other party will receive a greater share of the remaining marital assets, as compared to a lower business interest value. As we will discuss in this article, the facts and circumstances of the business interest being valued may reasonably support various assumptions when comparing two valuation conclusions.
Mercer Capital’s Litigation Support Teams is excited to share our newly published resource Navigating Tax Returns | Tips and Key Focus Areas for Family Law Attorneys and Divorcing Individuals/Business Owners. This piece is designed to help you better understand how to navigate tax returns on behalf of your clients.
The valuation of stock options is a complex issue that divorcing parties may face during the determination and division of the marital estate. Designed as compensation to both reward past performance and retain employees in the future, these benefits can be difficult to value, particularly at a specific point in time for the purpose of marital dissolution. In this article, we walk through an example of how to value a not so simple stock option situation – one in a start-up company.
In each “Meet the Team” segment, we highlight a different professional on our Family Law team. In this segment, we highlight David Harkins. David works in our Nashville office and is a member of the firm’s Litigation Services Support team.
Determining the value and classification of financial assets can be challenging during a divorce proceeding. The value of a couple’s closely held business could be the most valuable asset in the marital estate. If the business was owned prior to marriage, the identification and quantification of any appreciation as active or passive could be critical to the overall marital value placed on that asset.
In previous posts, we wrote about the income and market approaches used in business valuations. This article presents a broad overview of the third approach, the asset approach. While each approach should be considered, the approach(es) ultimately relied upon will depend on the unique facts and circumstances of each situation.
In each “Meet the Team” segment, we highlight a different professional on our Family Law team. This segment we highlight Chris Mercer. Chris is the Chariman here at Mercer and is active in family law litigation and corporate valuation.
This is the third of the three-part series where we focus on key areas to assist family lawyers and divorcing parties. Part III will concentrate on Schedule K-1 (Form 1065) and additional business-related schedules which can be useful in divorce proceedings.
In this article, we provide highlights from recent conferences attended, the 2021 AICPA & CIMA Forensic and Valuation Services Conference, the 2021 AAML Annual Meeting, and the AAML Foundation Luncheon.
This is the second of the three-part series where we focus on the key areas of tax returns to assist family lawyers and divorcing parties. Part II concentrates on Schedule A (Form 1040) Itemized Deductions.
In each “Meet the Team” segment, we highlight a different professional on our Family Law team. This segment we highlight Karolina Calhoun, CPA/ABV/CFF. Karolina is a Vice President here at Mercer and is active in family law litigation and corporate valuation.
In this article, we’ll be presenting a broad overview of the income approach. The final approach, the asset-based approach, will discussed in a future article. While each approach should be considered, the approach(es) ultimately relied upon will depend on the unique facts and circumstances of each situation.
In each “Meet the Team” segment, we highlight a different professional on our Family Law team. This segment we highlight Scott Womack, ASA, MAFF. Scott is a Senior Vice President here at Mercer and is active in family law litigation and corporate valuation. Scott also leads our Auto Dealership Industry team.
Knowing how to navigate key areas of Form 1040 can be quite useful in divorce proceedings. Information within the tax return can provide support for marital assets and liabilities, determination of spousal and child support, and potential further analyses. In this post we discuss why a Form 1040 could be important in divorce proceedings and some key areas of focus.