Articles From Brisbane Consulting Group

When high net worth individuals file for divorce, both sides have a financial incentive to hide assets owned by their spousal “partnership,” so it is important to inventory the marital estate as soon as possible. 

Delaware’s Supreme Court recently struck down a controversial statutory appraisal decision in Verition Partners Master Fund Ltd. v. Aruba Networks, Inc.

The cost of capital is an important consideration when valuing a business under the income approach.

The buyout provision of an owners’ agreement must be carefully drafted and regularly reviewed. If it isn’t, the buyout may not be legally enforceable — or serve the owners’ current needs.

In litigation involving professional practices, many courts have recognized the importance of industry-specific valuation experience.

In mergers and acquisitions, the target company’s financial statements provide the numbers to support the selling price, but those quantitative results may not be sustainable.

Start-ups present valuation challenges because they often have limited earnings and cash flow. Business valuation experts must look to other factors, many of them subjective, to estimate value.

In commercial tort claims, courts must decide how much damage the plaintiff suffered from the defendant’s alleged wrongdoing. A recent Eighth U.S. Circuit Court of Appeals case upheld a jury’s damages award based on lost market value, even though the business wasn’t completely destroyed.

Struggling businesses face different financial challenges than healthy ones do. These differences factor into their estimations when valuing troubled companies.

When divorcing spouses own a private business interest, it complicates the settlement process. In general, the business needs to be valued and then included — either entirely or partially, depending on state law and legal precedent — in the marital estate.