Six Common Valuation Pitfalls in Shareholders’ Agreements
The purpose of a buy-sell agreement is to ensure a smooth transfer of ownership and avoid disputes over the buyout price when an owner dies or leaves the business.
A complete valuation will provide an unambiguous indication of value and includes an in-depth analysis of the subject company, its industry, financial condition, earning capacity, and the national and local economy. All of our business valuations conform to the standards promulgated by the American Institute of Certified Public Accountants, the American Society of Appraisers, the National Association of Certified Valuation Analysts, and the Uniform Standards of Professional Appraisal Practice.
Divorce proceedings are among life’s most stressful challenges, and that stress becomes magnified when clients don’t have the financial answers being demanded of them. Brisbane Consulting Group can hold a lens to these concerns and ensure that no document, statement, or expense escapes our scrutiny. Just as a magnifying glass bends rays of light to reveal a clearer image, Brisbane Consulting Group focuses disparate and intricate financial data into all-encompassing reports that give a clear image of financial reality. This means you and your client will be fully prepared with corroborating declarations that give the case every advantage available.
Unfortunately, sometimes marital funds are used for purposes that do not benefit the marriage and fraudulently reduce the value of the marital estate. Proving asset dissipation requires an exhaustive analysis and tracing of expenditures. Brisbane Consulting Group specializes in tracing analysis, and our reports are often used to recover assets for the offended spouse and obtain a more equitable distribution for your client.
Settlement and Negotiation
We can assist in settlement of the financial issues and negotiate with IRS agents or opposing experts. In addition, we have been court appointed as accounting, economic and valuation experts, and have served the judiciary as a receiver for troubled companies.
Trial (Expert Witness Testimony)
Success at trial requires substantial preparation, enhanced visual aids, and excellent expert testimony. Our trial services extend beyond the trial date and include case strategy, discovery, and preparation of questions for use at depositions and trial. We have been qualified and have rendered expert testimony across several counties of the New York State Supreme Court and Federal Court.
In some cases, the participant spouse might offer to buy his or her spouse out of their share of the pension. Applying the marital coverture as required under case precedent, a pension valuation can be provided efficiently and within budget.
The income approach method of determining the value of a business is based on its ability to generate desired economic benefit for the owners. The key objective of the income-based methods is to determine the business value as a function of the economic benefit. This approach involves an analysis of current cash flow, the annual rate of return and the expected value of the business.
Cash Flow Analysis
Structuring a divorce agreement or presenting your case at trial can be daunting, especially in today’s current tax environment. Knowing the parties’ net income after taxes, child support, and maintenance is essential in establishing the appropriate amounts. We can also run schedules illustrating net income before and after the Tax Cuts and Jobs Act that was signed into law in December 2017.
After valuation issues are settled, our expertise as CPAs allows us to structure the terms of the settlement. In addition to our proprietary valuation software, we have customized divorce-planning software which instantaneously calculates guideline child support and the after-tax cash flow of the parties after maintenance and a distributive award. This sophisticated program provides a comparative analysis of various settlement and support scenarios.