Posted on Thursday, May 31st, 2012 by Frank Suponcic, CPA, CFE, CFF
This month's issue of Valuation & Litigation Advisory Insights includes the following articles:
- Changes to Ohio's Law For Dissenting Shareholder Rights and What it Means For Business Valuations
- 10 Questions to Help You Evaluate a Valuation Report
- Beware the Dangers of Advocacy
Changes to Ohio's Law For Dissenting Shareholder Rights and What it Means For Business Valuations
Recent changes to the Ohio Revised Code streamlined the process for relief and clarified the rights of dissenting shareholders of corporations formed in Ohio. The changes clarify the appropriate standard of value to be applied in dissenting shareholder rights disputes. This article looks at how fair cash value is defined and calculated and how business valuations are affected by this change.
10 Questions to Help You Evaluate a Valuation Report
Not all business valuation reports are created equal. So it’s critical that attorneys scrutinize information prepared by valuation experts — both their own and their opponents’ — for signs of weakness or susceptibility to challenge in court. This article offers 10 questions to ask when reviewing a report, including whether the expert has the right qualifications and uses the appropriate valuation standards; whether his or her calculations are reasonable; and whether market multiples have been adjusted.
Hiring an Expert? Beware the Dangers of Advocacy
In settling a dispute through litigation, one side or the other may need to hire an expert witness. An expert is not there to be an advocate for the client but to provide an impartial analysis of the evidence. All too often, however, experts do act as advocates — which ultimately can hurt the client’s case. This article explains the dangers of expert advocacy and the importance of presenting the facts fairly.
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If you have questions about any of these articles, post a comment below or please contact our Valuation & Litigation Advisory Services Group at 440-449-6800.