Finance Expert Witness On Business Valuations Part 2

In Important Issues of Business Valuations For Attorneys and Their Clients finance expert witness Richard Teichner, CPA, CVA, CDFAJ, writes:

Depending on the reason for the valuation, there are various factors that need to be considered, some of which are contained in the descriptions of the terms listed below. If an independent business valuation expert is called upon to assist in establishing a value and/or opine to a value, he or she must have access to all relevant information to be able to determine which factors apply in the particular situation. The attorney and client need to allow and encourage open communication between themselves and the valuator. Too often the intentions of the parties are not apparent, understood or properly articulated, and the facts and circumstances surrounding the true purpose of the valuation are not adequately disclosed. Also, the valuator should know the identities of all the parties to, and affected by, the valuation. Certainly, the valuator has a responsibility to seek all information necessary to do a thorough job, but all other parties involved have to be willing to collaborate in the effort of providing whatever information they and the valuator may deem to be pertinent.