Shareholder disputes
Valuation in minority oppression, dissociation, and buyout matters.
Business Valuation
Contested valuation for shareholder disputes, dissolution, and commercial matters.
A forensic business valuation establishes the contested value of a business or business interest under the standards of the relevant proceeding.
Forensic valuation in litigation requires more than applying a standard formula. It demands identifying and defending the assumptions underlying the analysis, anticipating opposing-expert critiques, and presenting conclusions clearly to judges, juries, and arbitrators. The applicable standard of value, valuation date, and level of value depend on the legal context.
Types of cases
Marital dissolution
Valuation of business interests in family-law proceedings.
Estate and gift
Fair-market valuation for tax matters and probate.
Commercial litigation
Damages-related valuation in breach, fraud, and tort matters.
What we provide
Independent valuation analysis available to plaintiff or defense counsel.
Our work applies the three recognized approaches to value, the income approach, the market approach, and the asset approach, with the weight given to each driven by the nature of the business, the standard of value, and the available evidence. Where the income approach is appropriate, the analysis projects expected cash flows and applies a defensible discount rate. Where the market approach is appropriate, the analysis identifies guideline transactions or public comparables and adjusts for differences in size, growth, and risk. Discounts for lack of control and lack of marketability are applied only where the legal context supports them.
Reports are written to satisfy FRCP 26(a)(2)(B), supported by deposition and trial testimony as needed. Closely related work appears on the business-interruption page.
Common questions
What counsel asks before retaining an economic expert.
What are the three main approaches to business valuation?
The three recognized approaches are the income approach, the market approach, and the asset approach. The income approach values a business based on its expected future earnings or cash flows, discounted to present value. The market approach derives value from the prices paid for comparable businesses or business interests. The asset approach calculates value based on the fair market value of the company's underlying assets minus its liabilities.
When is a business valuation needed for litigation?
Business valuations are commonly required in shareholder and partnership disputes, marital dissolution proceedings involving business interests, estate and gift tax matters, minority oppression claims, and breach of fiduciary duty cases. Any litigation that involves determining the value of a business interest or the economic impact on a business may require a formal valuation by a qualified expert.
How long does a business valuation typically take?
The timeline depends on the complexity of the business, the availability of financial records, and the scope of the engagement. We work with counsel to meet discovery and trial deadlines.
What documents are needed for a business valuation?
The documents needed for a valuation depend on the nature of the business, the purpose of the valuation, and the specific issues involved. A forensic economist works with counsel to identify and obtain the financial and operational records relevant to each engagement.
Where do your economists practice?
Our economists are based in Wisconsin and California and provide expert economic analysis and testimony in federal and state courts nationwide. We have particular depth of experience in Wisconsin, Minnesota, Iowa, Illinois, and California, but regularly accept engagements throughout the United States.
Practice scope Federal and state courts nationwide.