KW Economics prepares business valuation for partnership and shareholder dispute cases venued in Kentucky: what the loss claim consists of, the records that drive it, and a present value built to Kentucky 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.
Kentucky trial judges act as gatekeepers for expert testimony and ask whether the method is reliable, whether it has been tested and accepted in the profession, and whether it fits the facts of the case, with the witness qualified by training and experience. A damages report meets that inquiry by stating its assumptions and naming the data behind each one.
Highest court: Kentucky Supreme Court. Court system: kycourts.gov.
Federal venues: Eastern District of Kentucky, Western District of Kentucky.
Kentucky applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Prejudgment interest follows as of right on a liquidated sum and is discretionary on unliquidated damages. Economic damages are not subject to a general statutory limit, and the report separates the sums that were due from the amounts that had to be projected so counsel can apply whichever interest rule governs.
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.
Kentucky trial judges act as gatekeepers for expert testimony and ask whether the method is reliable, whether it has been tested and accepted in the profession, and whether it fits the facts of the case, with the witness qualified by training and experience. A damages report meets that inquiry by stating its assumptions and naming the data behind each one. Partnership and Shareholder Dispute cases venued in Kentucky are heard in the Circuit Court (General jurisdiction; larger civil cases, felonies, domestic relations), with final appeals to the Kentucky Supreme Court. Matters within federal jurisdiction proceed in the Eastern District of Kentucky and Western District of Kentucky.
Kentucky applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Prejudgment interest follows as of right on a liquidated sum and is discretionary on unliquidated damages. Economic damages are not subject to a general statutory limit, and the report separates the sums that were due from the amounts that had to be projected so counsel can apply whichever interest rule governs. 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 Kentucky rules to a documented figure.
Request a consultation on Business Valuation or call (201) 343-0700. Plaintiff and defense counsel.