Rebuttal analysis applied to partnership and shareholder dispute litigation: methodology, deliverables, and case-specific considerations.
A valuation report in an owner dispute is tested on the valuation date, the standard of value, the normalizing adjustments, the approaches applied and how they were reconciled, and any discounts or premiums. The economist checks whether the standard matches the claim and the agreement, whether owner compensation and related-party dealings were normalized on market evidence, whether the discount rate and market multiples are supported by their sources, and whether a minority or marketability discount is appropriate under the standard applied. The review quantifies the effect of each correction and shows the value under the alternative standard where the choice is disputed.
Critique of an opposing economic damages, valuation, or forensic accounting report for plaintiff or defense counsel. The review tests the assumptions, data sources, discount rates, worklife and life expectancy inputs, growth rates, mitigation treatment, and arithmetic behind the opposing number, identifies the errors that matter, and quantifies how the conclusion changes when they are corrected. The result supports cross-examination, a rebuttal report, or a motion directed at the reliability of the opinion.
Depending on the claim, the analysis consists of the fair value or fair market value of the ownership interest as of the relevant date, the difference between what the departing owner received and what the interest was worth, distributions or profits diverted through excess compensation, related-party transactions, or unrecorded revenue, and lost profits to the business or to the owner when the conduct at issue reduced earnings. The drivers are the operating agreement or shareholder agreement and its buyout terms, historical financial statements and tax returns, the general ledger, compensation and distribution records, and documentation of transactions with related entities.
We issue a rebuttal report where one is disclosed and provide deposition and trial testimony, cross-examination outlines, and support for motions directed at the opinion.
Applying discounts that a fair value standard excludes, normalizing owner compensation without market evidence, using a discount rate or multiples the sources do not support, and choosing a valuation date the agreement does not. The review quantifies each.
Yes. The economist checks whether the diverted amounts were established from the ledger and bank records or estimated, whether the amounts also appear as valuation adjustments so the loss is counted twice, and whether the causal link to the conduct at issue is documented.
Request a consultation on Rebuttal or call (201) 343-0700. Plaintiff and defense counsel.