In 2010 we saw a number of high profile celebrity divorces and break ups occupying the tabloids and evening news. Tiger Woods and Elin Nordegren’s divorce was just the beginning. As the year closed we saw Sandra Bullock’s marriage crash and burn. Even Hollywood’s starlets like Elizabeth Hurley, Eva Longoria and Scarlett Johansson couldn’t avoid the hazards of matrimonial failure. In some instances these divorces may have ended inauspiciously due to a prenuptial agreement or the ability of the parties to cut ties financially without disrupting their lifestyle. For attorneys representing clients in a divorce the breakdown of this economic partnership may require a forensic accountant and business valuation expert. But how does the matrimonial practitioner use this resource to better serve their client? Here are four things to consider, along with cases that illustrate the issues. Always Use a Qualified Business Valuation Expert. In Brooks v. Brooks, the husband owned minority interests in his family’s limited liability companies (LLCs), which held commercial property. At trial, the wife presented the companies’ financial statements and a real estate expert, who appraised the LLC’s underlying property at $61 million. Notably, the expert testified that his appraisal was only the first step in a fair market valuation (FMV), which required assessing the companies’ outstanding debt and closely held stock. At the close of the wife’s case, the husband decided not to call his BV expert, saying there was “no valuation testimony” to rebut. Instead, he presented only the operative buy-sell agreements plus his tax returns, which essentially showed a […]
Yearly Archives: 2013
We have distilled decades of experience at the intersection of law, business and finance into a suite of articles to help our clients make sense of business valuation, forensic accounting, and litigation support. Please visit our site regularly for our latest content.
Using Business Valuation Experts to Your Best Advantage in Divorce
Posted in Divorce & Matrimony, on Mar 2013, By: Mark S. GottliebShare
An Attorney’s Guide to Understanding Business Valuation Standards
Posted in Business Valuation, on Feb 2013, By: Mark S. GottliebShare
Reputations and public perception are often associated with performance and adherence to rules that govern an activity. Lance Armstrong, once the darling of cycling, is expected to lose more than $50 million dollars of future sponsorships and endorsements as a result of his admissions to violating his sport’s standards. Many also believe that his well-documented doping activities will leave him stripped of a once untarnished professional reputation. Armstrong is not alone; there have been many other examples of people purposely violating their professions’ standards in an attempt to gain an upper-hand. Business valuation analysts are held to certain standards established by their credentialing organizations. Ultimately, these standards are intended to secure the credibility and quality to their work-product. Working with a credentialed business valuation analyst that adheres to these standards is important to both attorneys and their clients. In our current whitepaper, “An Attorney’s Guide To Understanding Business Valuation Standards,” Mark S. Gottlieb outlines the organizations and premises of their professional standards. Attorneys need to be familiar with these standards so that they can illustrate the credibility of their expert, or better understand the possible deficiencies of opposing professional opinions. Please click here to instantly obtain a free copy of this whitepaper.