Business Valuation in Divorce Cases

Business Valuation in Divorce Cases

Business Valuation in Divorce Cases.

When conducting a business valuation in divorce cases, and with Family Court Valuations many business valuations are prepared on a single expert witness basis. This reduces the overall cost to the parties as well as reduces the time in court.

There are a number of factors to be taken into consideration when conducting family law valuations and for this reason methodologies vary greatly depending on the type of business being valued.

For a business valuation in divorce cases for the Family Court, two valuation approaches are usually used for the business valuation. "The Asset Approach" should the business not be profit making, or the "Income Approach" if the business is generating positive cashflow. Both methods cannot be used at the same time as research has shown there is usually no significant correlation between a profitable business's fair market value, and the net tangible assets of the same business.

The "Market Approach" method is very rarely used because of the extreme difficulty in finding truly comparable business sales. Even when non-listed business data is available, it is often meaningless, as pertinent factors are frequently omitted.

It is important that all the parties understand the nature of the business in question and the approach and methodologies used in valuing the business.

In our reports we explain the business and methodology used in valuing the business, and the reason or reasons why we have chosen that valuation approach.

Our reports are clear and concise and are easily understood by all parties in the Family Law matter.

The principle of Business Reports and Values, Lee Goldstein, has been involved in the Sale of Businesses and Business Valuations  since 1985. He holds the following qualifications.

Double Major Degree in Accounting and Finance

Diploma in Forensic Accounting

Graduate Diploma in Valuation

Advanced Certificate of Business

Advanced International Certificate in Intellectual Property.

He has conducted numerous intellectual property valuations covering a diverse range of industries and  is often called upon to provide expert testimony in judicial matters. Lee has valued businesses and intellectual property worth over $350,000,000.

 

 

 

 

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