Valuation of closely held businesses and ownership interests for shareholder and partnership disputes, divorce, estate and gift matters, and buy-sell disagreements. The work applies the income, market, and asset approaches under the standard of value that governs the matter, addresses discounts for lack of control and marketability where they apply, and documents every input so the conclusion can be tested on cross-examination.
KW Economics prepares business valuation for plaintiff and defense counsel nationwide; the method is the same whichever side retains the economist.
Business valuation at KW Economics is directed by Christopher Skerritt, M.Ed., MBA, Chief of Economic Services, who is available to testify to it.
How business valuation applies to the specific demands of each case type: methodology, deliverables, and what counsel should expect.
The one the matter's governing framework or the parties' agreement identifies: fair market value in most tax and buy-sell contexts, fair value in many shareholder oppression and dissenting-shareholder claims, and the standard the domestic relations framework applies in divorce. The standard determines whether discounts for lack of control and marketability apply, and the report states the standard used and can show the result under an alternative.
The income, market, and asset approaches as the facts support. An operating company with a track record is usually valued on its expected cash flows, with market multiples as a check; an asset-holding entity on the value of what it holds. The report explains which approaches were applied, how the indications were reconciled, and why any approach was not used.
Several years of financial statements and tax returns, general ledger detail, the operating or shareholder agreement, ownership records, budgets and forecasts, compensation records for the owners, and any prior valuations or buy-sell offers. The records also support the normalizing adjustments for owner compensation, related-party transactions, and non-operating assets.
By documenting every input. The report ties each normalizing adjustment to a record, states the source and date of every market input, explains the discount rate and any valuation discounts from published data, and shows how the conclusion moves with the principal assumptions, so the opposing side can test the method rather than guess at it.
No state licenses forensic economists. Qualification to testify on business valuation is decided case by case on education, method, and testimony history; these pages explain what each credential establishes and what it does not.
Request a consultation on Business Valuation or call (201) 343-0700. Plaintiff and defense counsel.