Hello
Welcome to the twelfth issue of Valuation and Litigation Insights! My goal is to bring you hand-picked content related to business valuation and litigation that will make your life easier and help your clients get the results they deserve.
I hope you enjoyed the recent Labor Day weekend, traditionally the unofficial end of summer. Before you know it the holidays will be here. So let's make the next few months super-productive.
On to this issue. We start by looking at recent business divorce decisions from around the country.
Next, we look at the phenomenon of "anchoring." Often a negotiated value will be driven by the starting point, or "anchor." This podcast provides how to deal with an "anchor" set by another party and how to position the narrative, or set your own anchor, to the benefit of your client.
Computing damages for an early-stage business was once ruled out by the courts as speculative. But in today's world, where pre-revenue companies command high valuations, that is no longer the case. This article lists things to be aware of when reviewing damages for a start-up.
Measuring valuation damages in a shareholder dispute is always tricky, but especially so when considering the impact of the COVID-19 pandemic. This article discusses a couple inputs -- valuation date and the financial forecast -- that are particularly crucial during a period of uncertainty.
Finally, we review 10 problems commonly found in a business valuation report. It's a handy list if you are trying to understand, defend, or scrutinize a valuation.
Hope you enjoy this issue and find it useful!
Valuation and Litigation Insights
News and Trends
Summer Shorts: Business Divorce Cases From Across the Country
What has been happening in the world of business divorce lately?
The New York law firm Farrell Fritz summarizes half a dozen cases of interest from across the country.
nybusinessdivorce.com
Things to Know
Seven Techniques to Consider When Calculating Damages for Early-Stage Companies
Gone are the days when calculating lost profits for an early stage company was dismissed right off the bat as "speculative."
Still, providing a credible measure of lost profits/damages for a startup is challenging.
This article shares 7 techniques an expert ought to consider when doing so.
bvresources.com
Measuring Valuation Damages in Shareholder Disputes During the COVID-19 Pandemic
Two key factors in determining valuation damages in a shareholder dispute are the date of valuation and the related financial forecast.
While always important, these assumptions are even more critical during a rapidly-changing situation such the COVID-19 pandemic. This article explains why.
ankura.com
10 Common Pitfalls When Reviewing Business Valuation Expert Opinions
We all can use a good checklist, especially when wading through something as potentially complex as a business valuation prepared for a contentious matter.
This article lists 10 common errors attorneys should be aware of when scrutinizing a business valuation analysis.
stout.com
Tools and Tips
What is Anchoring? What is Adjustment?
Setting an "anchor" can have a huge impact on the award of damages or business value in mediation or trial.
This podcast episode provides insight on how to deal with anchoring - how to refute them and set your own. Use of these tools can result in far better results for your clients.
youtu.be
In Closing
That's it for now. If you found this issue of Valuation and Litigation Insights useful, please forward it to a friend or colleague.
And if you have a valuation or damages-related issue you would like to discuss, you can reach me one of the ways below.
Talk to you soon!
Will
William W. Thomsen
Director of Valuation and Litigation Services
Grobstein Teeple, LLP
www.gtllp.com
Call me at 818-502-4950
Email me at wthomsen@gtllp.com
Valuation and Litigation Insights