KW Economics prepares business valuation for partnership and shareholder dispute cases venued in the District of Columbia: what the loss claim consists of, the records that drive it, and a present value built to District of Columbia damages rules and venues. Plaintiff and defense.
In a partnership or shareholder dispute the valuation turns on the valuation date, the standard of value, and any buyout formula in the operating or shareholder agreement. The economist reviews the agreements to fix those terms, normalizes the financial statements for owner compensation, related-party transactions, and non-recurring items, and values the interest using the income, market, and asset approaches as the facts support. Because a fair value standard may exclude the minority and marketability discounts that fair market value applies, the report states the standard used and can show the result under the alternative so the difference is quantified rather than argued.
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.
The valuation date and the standard of value control the result: a fair value standard may exclude the minority and marketability discounts that a fair market value standard applies, and the gap between the two can be substantial for a minority interest in a closely held company. Normalizing adjustments to owner compensation and related-party dealings often decide whether the business shows earnings to value at all. Where the claim includes diverted profits, the amount depends on how far back the records permit reconstruction and on whether the business's actual results can be separated from market conditions.
District of Columbia courts ask the trial judge to act as gatekeeper for expert testimony, examining whether the witness is qualified by training and experience, whether the method is reliable and accepted in the profession, and whether it was applied reliably to the facts. An economic damages report meets that inquiry by tying each input to the record and naming its published sources.
Highest court: District of Columbia Court of Appeals. Court system: dccourts.gov.
Federal venues: District of Columbia.
The District retains contributory negligence, so in most negligence-based claims any fault on the plaintiff's part is a complete bar rather than a percentage reduction. Prejudgment interest runs as of right on a liquidated debt and is discretionary on unliquidated damages. Economic damages are not subject to a general statutory limit, so the report states each loss as of a fixed date and identifies the components that were liquidated when they accrued.
We issue the final report and provide deposition and trial testimony and critique of opposing valuation reports.
In a partnership or shareholder dispute the valuation turns on the valuation date, the standard of value, and any buyout formula in the operating or shareholder agreement. The economist reviews the agreements to fix those terms, normalizes the financial statements for owner compensation, related-party transactions, and non-recurring items, and values the interest using the income, market, and asset approaches as the facts support. Because a fair value standard may exclude the minority and marketability discounts that fair market value applies, the report states the standard used and can show the result under the alternative so the difference is quantified rather than argued.
District of Columbia courts ask the trial judge to act as gatekeeper for expert testimony, examining whether the witness is qualified by training and experience, whether the method is reliable and accepted in the profession, and whether it was applied reliably to the facts. An economic damages report meets that inquiry by tying each input to the record and naming its published sources. Partnership and Shareholder Dispute cases venued in the District of Columbia are heard in the Superior Court of the District of Columbia (General jurisdiction trial court; civil, criminal, family, probate, and tax matters), with final appeals to the District of Columbia Court of Appeals. Matters within federal jurisdiction proceed in the District of Columbia.
The District retains contributory negligence, so in most negligence-based claims any fault on the plaintiff's part is a complete bar rather than a percentage reduction. Prejudgment interest runs as of right on a liquidated debt and is discretionary on unliquidated damages. Economic damages are not subject to a general statutory limit, so the report states each loss as of a fixed date and identifies the components that were liquidated when they accrued. The report presents past and future amounts separately, states every rate and table with its source, and shows the result under the alternatives the other side is likely to argue, so counsel can apply the District of Columbia rules to a documented figure.
Request a consultation on Business Valuation or call (201) 343-0700. Plaintiff and defense counsel.