BUSINESS VALUATION FOR PARTNERSHIP AND SHAREHOLDER DISPUTES
For anybody operating in the thick of partnership and shareholder disputes, it is vital that all parties know exactly where they stand — this is particularly true if one partner/shareholder is looking to exit the business. It is crucial, upon their exit, that they receive a fair value for their investment.
How Forensic Accounting Helps with Resolving Shareholder Disputes
A good forensic accountant should be able to enter into a complicated situation and draw from their training, expertise, and vast experience and knowledge to offer vital advice, act as an expert witness during potentially complex and drawn out litigation, and more.
If you’re looking to resolve a shareholder dispute, the best chance you have of a clean break is to contact a forensic accountant as soon as possible. The earlier a forensic accountant is brought on board the better the chance that you can avoid litigation. This can save you unnecessary stress, wasted time, and significant sums of money in the long run.
When it comes to resolving partnership and shareholder disputes, no two cases are ever truly the same — every dispute is unique in one way or another and therefore requires a distinct method of resolution.
The role of a forensic accountant will often involve the collection and analysis of relevant and crucial information. However, when helping to resolve a shareholder dispute, a forensic accountant can offer a variety of different services, including but not limited to quantifying the validity and data behind any breach of contract damage claims, share valuation, assessing the veracity of the evidence supporting the valuation, acting as an expert witness, and challenging any reports from an opposite expert witness
Partnership and shareholder disputes can be highly complicated cases — both parties can feel like they are walking on eggshells, conscious that doing the wrong thing could cause huge issues. Resolving disputes often requires a combination of savvy, commercial expertise, and a strong approach. A forensic accountant, working in tandem with your legal team will offer you all of this and more in the pursuit of the best outcome possible.
Examples of Shareholder Disputes
There are all manner of different potential causes for a shareholder dispute, this can include conflicts surrounding:
- Contracts
- Accusations of withholding financial information
- Particular transactions
- Unhappiness regarding the value of dividend
- Professional negligence
- A partner being removed from the business
- A shareholder or partner wishing to exit the business
Key Business Valuation Information
The job of valuing two businesses can be a complicated one at times. This complication is due to the unavoidable fact that each and every business, and by extension each and every business valuation is unique.
While the finer details of each business valuation will vary greatly, it is important to collate key information across two core categories consistent across all valuations: commercial and financial information.
Commercial information refers to studying a company’s turnover (income, expansion plans, etc.) Whereas financial information pertains to financial statements, projections, budgets, and more.
Simple Business Valuation Methods
When undertaking a business valuation for shareholder disputes it is vital that regardless of the size of the business or dispute that you are as honest and accurate as possible — nobody wants to be caught out making unfounded estimates in business. The most common methods of valuing businesses include assessments of a firm’s income, net asset valuations, or dividend yield.
How Inquesta Can Help Resolve Your Shareholder & Partnership Dispute Cases
Experts in assisting companies with business valuation for shareholder disputes for decades, Inquesta knows the valuation process from top to bottom, making us perfectly placed to assist you.
We offer a bespoke, holistic service for all of our clients. No matter the issue, we are here to help; however we can — covering all bases is what we do.
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Our Specialist Team
The Inquesta team possesses decades worth of experience, expertise, and knowledge.
When it comes to your business valuation issues, we’ve been there before and know exactly what it takes to help.
Rob Miller
Director of Forensic Accounting
A co-founder of Inquesta, Rob Miller is a chartered accountant, a member of the Institute of Chartered Accountants in England and Wales (ICAEW), and a Practising Member of The Academy of Experts.
With decades of experience in providing specialist forensic accounting services, Rob has been instructed to assist with numerous cases — such as financial investigations, criminal defence and confiscation proceedings, commercial and contractual disputes, valuation matters, and much more besides. He has acted on behalf of claimants, defendants, and as a single joint expert.
“Rob Miller is my first choice for forensic accountancy on criminal cases. He has an impressive eye for detail and adopts a ‘user-friendly’ approach to interaction with our clients and other professionals which ensures the smooth running of any task we instruct him to undertake.”
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Manoeuvring the various pitfalls of a shareholder dispute can be highly complicated for anybody. The process, if handled by people not well-versed in the ins and outs, can drag. This is only likely to pile on additional, unnecessary stress and costs on top of the pre-existing issues.
For additional assistance with valuing your businesses assets, Inquesta has worked to produce a handy valuation guide designed to help answer your business valuation needs.
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