The arenas of corporate law and valuation disputes are unpredictable. Many companies are not even aware that they need legal support until it is too late.
Valuation disputes are one of the most common services requested when preparing for a legal battle. If you or your executive team is facing a valuation dispute or other litigation issue, here is what you need to know in advance.
Determining the worth of a specific item or event requires complex analytical thought and extensive research. Whether in a corporate or familial circumstance, these processes are difficult and both skill and tact are required to successfully resolve a dispute. Regardless of which side of the dispute your company is representing, you must have the confident ability to protect your stance and solidify your valuation claims.
Mergers and Acquisitions
Mutually beneficial mergers and acquisitions occur virtually every day. Oftentimes, a floundering company is absorbed by a larger company. This effort saves a customer base, provides income, and supplies viable leads to the purchasing company. Post-closing valuation disputes are not uncommon in buyout situations. Remorse can stem from either the buyer or the seller and cause a disagreement. Understated or overstated earnings and other missed expectations can quickly lead to litigation. Expert and swift valuation assessments are required to protect your stance and remove objectivity from the discussion.
Despite the close regulation of the financial industry, shareholder disputes are on the rise. A minority shareholder dispute could become a class action suit if not properly addressed. Publicly traded companies are at risk of litigation from external and internal shareholders. Corporate entities are judged by the return they provide for investors as well as how they perform as a whole. Earnings statements and reports are heavily weighted against stockholder interests.
Prepare for the best outcome by having an independent appraisal report ready for public viewing. Any number of regulatory agencies and governing bodies could take part in a shareholder valuation dispute.
In the unfortunate case of corporate restructuring or bankruptcy, the Courts demand a high level of research and reporting. The sometimes conflicting goals of company executives versus trustees and the U.S. Court must be amicably resolved. Independent analysis will protect your business interests and introduce an acceptable fair market evaluation. This valuation report will be used not only to determine the overall assets of a business, but also provide options for suitable recovery.
These situations represent only a small portion of any number of potential valuation dispute cases. Large corporations and small businesses alike must have an adequate litigation support team on standby. Appraisal Economics has provided expert witness testimony in many of these scenarios, including: federal tax cases, determining damages, and bankruptcy cases. Individuals involved in martial or even custody disputes must have litigation support to prevent unnecessary losses. Otherwise, the results could be devastating.
Untold financial losses, and even criminal proceedings, could result if the executive staff is unprepared for a routine audit or an unexpected lawsuit. Make certain that your reputation and assets are protected before a valuation dispute or other litigious circumstance arises.