An accurate valuation of your business is critical during a bankruptcy. The resulting documentation can help with creditor negotiations, as well as providing a sound basis for a financial restructuring plan. In addition, you will understand what is realistically available to your company’s creditors — both secured and unsecured — and if anything remains for equity holders. Should your company continue operating, you will need to know the amount you could leverage or convert to cash to underwrite your business operations both during the bankruptcy and afterwards.
Improper actions can put business owners in the unhappy position of seeking compensation for economic damages through litigation. It is critical that you have a team analyze your financial and economic documentation, since compensation is determined through an analysis of the difference between your company’s actual value and its worth following the damaging event. Whether your case rests on breaches of fiduciary duties, breaking of contracts, or issues with tort claims, a business valuation and measurement of economic loss is imperative in order to recoup any losses. A further reason to make a claim of economic damages or lost business value is in situations where the inappropriate actions could potentially prevent any return to your business’s previous profitability or require a complete shutdown of your company.
In order to seek the remission of funds for a specific period of time when your company saw a marked decrease in profitability due to malfeasance, you should utilize a lost profits’ claim. A business assessment or expert will create an analysis for you that indicates what your profits would have been in comparison to what they were in the wake of this finite crisis. Working with an experienced financial analyst will guide you through market trends of related business, past earnings, and possible future growth to determine the amount lost profits.
Family Law / Marital Dissolution
Obtaining a business valuation in the wake of marital dissolution can make certain aspects of family law significantly less complex. Your litigation support team will need to review all aspects of your company’s value, including stocks, property, other assets, and income to derive an equitable settlement. Marital support and custody issues can be resolved through the expert’s assessment of these components of your business, as well as investment amounts, potential fair market pricing, portion of the martial or familial estate, and net value.
No matter how well you run your business, conflicts will inevitably, eventually occur. A challenge that may need resolution through litigation is a shareholder dispute. Minority shareholders may claim that majority shareholders have taken actions that are detrimental to the minority holders’ positions. In these cases, it is essential to have a business valuation team offer litigation support and evaluate the fair market value of the business.