• Oct. 24, 2023: Complexities and Challenges of Business Valuation in Litigation

October 24, 2023, 1:00–3:00 pm EDT

Complexities and Challenges of Business Valuation in Litigation

Business valuation conducted in the context of litigation differs from that prepared for other purposes such as tax or financial reporting, and acquisitions. Business valuations prepared in this context can be applied as a measure of lost profits, to determine a buyout price or equivalent award in shareholder disputes, or as a measure of unjust enrichment.  This presentation will address several of the significant complexities and challenges that financial experts experience when conducting business valuation in litigation. 

Learning Objectives:

In this webinar, participants will learn how to address the following challenges posed by business valuation in litigation:

• Determining the appropriate standard of value
• Valuing unestablished businesses, where the past is not a good predictor of the future
• Dealing with the lack of access to contemporaneous discussion with management
• Preparing a valuation several years after the valuation date, when material subsequent events have occurred
• Ex-post vs. ex-ante considerations specific to business valuation used as a measure of damages
• Taxation considerations when estimating business value as a measure of damages – how to make plaintiff whole while avoiding a windfall
• Properly accounting for risk
• Reasonable normalization adjustments in litigation
• Loss of business value versus lost profits

Handouts:

• VPS webinar PowerPoint slides
• Following the webinar, attendees will have access to a video recording of the program

About the Presenters:

Carl Saba, MBA, CVA, ASA, ABV

• Partner, Hemming Morse, LLP
• 27 years of experience in valuation, financial analysis of companies, and damages calculations
• Past President, Board Member, Valuation Roundtable of San Francisco
• Co-founder, Past Executive Committee Chair, Fair Value Forum

Sacha Zadmehran, CFA, CPA/ABV

• Principal, Hemming Morse, LLP
• 20 years of experience in business valuation and commercial litigation, including experience as a testifying expert
• Adjunct Professor, Golden Gate University, Accounting 2011–2017

Jim Hitchner’s Valuation Products and Services (VPS) provides tools to assist practitioners in business valuation, litigation services, and forensics and fraud.

Valuation Products and Service, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org.