In Important Issues of Business Valuations For Attorneys and Their Clients finance expert witness Richard Teichner, CPA, CVA, CDFAJ, writes:
Attorneys often need to help their clients establish values for businesses or business interests. This article discusses some of the issues which need to be addressed before attempting to arrive at business values. Some examples of situations in which business values may need to be established, particularly in connection with the practice of law, are:
♦ Drafting or assistance with implementing buy-sell provisions in agreements between and among shareholders, partners and limited liability company members.
♦ Business acquisitions and mergers.
♦ Litigation matters where a measurement of economic damages is the diminution in the value of a business.
♦ Bankruptcy matters, such as when determinations need to be made as to whether to keep operating a business and/or sell it, or liquidate it.
♦ Marital dissolution proceedings.
♦ Condemnation proceedings.
♦ Gifting for estate planning purposes.
♦ Establishing values of a decedent’s estate.