Valuation & Litigation Advisory Blog

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

• Owners Compensation: Why Valuation Experts are Nosy about This Number
• Looking Ahead and Behind to Determine Lost Earnings
• The Role of Forensic Skepticism in Lost Profits Calculations
• Valuation Interviews Help Tell the Whole Story

Owners Compensation: Why Valuation Experts are Nosy about This Number

Some business owners feel that when a valuation expert asks them how much they make (and how much they would pay someone else to do their job) that the valuator has crossed a line. Most people do not realize, however, that adjustments related to owners' compensation often play a significant role in reaching an appropriate conclusion of value for ownership interests in privately-held companies.

Watch this video to learn more.

Looking ahead and behind to determine lost earnings

When an employee is let go against his or her will, he or she may turn to litigation, seeking damages for lost earnings. Such damages also may be sought by a plaintiff who has suffered an injury that affects his or her ability to work. When placing a value on lost earnings, the valuator looks not only behind, at the plaintiff's past earnings, but also ahead, estimating the plaintiff's future earnings. This article explains the techniques involved.

Click here to read this article.

The role of forensic skepticism in lost profits calculations

When financial experts analyze claims for lost profits or other business damages, it's important that they look behind the numbers for signs that they might have been manipulated or falsified. This article uses a fictitious example to show how this "forensic skepticism" is part of what makes forensic accounting and damages analysis an art as well as a science.

Click here to read this article.

Valuation interviews help tell the whole story

Interviewing a company's management team is a critical component of the valuation process. But a client's CEO or other top executive may resist these interviews because of time constraints, confidentiality concerns, or fear of alerting employees to a major event, such as a sale or bankruptcy. Nevertheless, such interviews are important - this article explains why.

Click here to read this article.

Prior issues are available in the E-Newsletter Archive of our Valuation & Litigation Advisory Services Resource Center. If you would like to subscribe to this free, monthly, business valuation and litigation support e-newsletter, send an email to info@skodaminotti.com.

If you have any questions about any of these articles, post a comment below or please contact our Valuation & Litigation Advisory Services Group at 440-449-6800.