Litigation Speaks

This is an easy way to discredit a business valuation expert

Some experts aren’t applying the standards in their valuations. The reason this is an important issue is that if the business valuation expert cannot be trusted to follow their Professional Standards by not using the proper language to describe the conclusion of their work product, how can they be trusted that they have not violated other sections of their Professional Standards

It’s beneficial for the client in all business valuations to share information with both sides of the case. Not sharing information potentially leads to having to make incorrect assumptions and weaker analysis to arrive at a conclusion of value.

The ABAR Concept of Creditability is grounded on consideration of inclusion of all known facts and circumstances (the good, the bad and the ugly ones) in the business valuation report. “Creditability” can be defined by seven basis processes, applied throughout the assignment. “Creditability is defined as “Worthy of belief”.

Preparing a business valuation report is very complex and time consuming.

Understanding how to implement both the art and science takes years of experience and is critical for the business valuator and the reader of the report.

All these factors play into the price but there is more that you may not know of.... Tune in and find out!

Welcome to 2023!

This week's episode I will be discussing the different factors of the art and science that impact a conclusion of value in a report.

Although its not your ideal piece of "art" the technique and experience is what I consider to be art in a valuation.

Even though we aren't mixing chemicals business valuations has its own science which would be the professional standards and the recognized text books that interpret those standards.

Do you really understand a valuation report?

This week's episode I will be elaborating why you cant use a the same valuation for two different purposes.

Have you ever wondered why a business valuation takes so long?

On this week’s episode I discuss the high level issues on why a biz val is so time consuming. Two major areas that expands the length of time, they are professional standards and the clients records. The condition of the client’s records is one of the primary drivers of the time and cost. Tune into this week’s episode to learn more on this and stick around for the next one where I break down the cost of business valuation.

Don't overpay your estate tax...

Small mistakes can lead to severe consequences. In my 30+ years of work in this field I constantly see reports where the valuation analyst have lacked due professional care that could cost the client hundreds and thousands of dollars or more.

Depreciation expense cannot be greater that the cost of an asset.... if it is there is too much depreciation expense which will lower the value of the company. For this episode I will be discussing the fallacy when doing a business valuation the capital expenditures and depreciation expense should not be exceed the capital expenditures in the terminal year.

Not all financial data that is used for making forecast or projections has predictive ability.

The incorrect use of data could have a devastating impact on the conclusions relied upon by an expert.

Do you know how to determine if the data has any predictive ability?

If you don’t know how don’t worry I’ve got you covered on this week’s podcast!