It is an unfortunate reality that business partners don’t always see eye to eye, and disputes between shareholders are not uncommon. Often such shareholder disputes arise either out of differences of opinion on the course of action the company is taking, or feelings of mistreatment or oppression from those who hold a minority number of shares.
In such cases, a shareholder may wish to depart the partnership, and legal representation may be sought. Oftentimes, lawyers will advise their client to obtain a formal business valuation to help resolve the shareholder dispute.
A proper business valuation is a complex process that requires expertise in generally accepted valuation principles and application. In the case of a shareholder dispute, the purpose of a valuation is to determine how much the shares are worth, at a certain point in time, so that an equitable sale can be facilitated.
Special considerations – including the practical realities of tax issues related to the sale of shares, determining the actual date of the valuation, and whether a minority discount should apply – must be made when preparing business valuation reports for shareholder disputes.
At Fuller Landau, our team of knowledgeable and experienced Chartered Business Valuators has earned a first-rate reputation for providing thorough, objective, and well-reasoned valuation reports for shareholder disputes.
Supplemented with the expertise of our in-house tax and accounting specialists, we offer a well-rounded analysis of the industry, economy, company size, competitive environment, customer base, and existing contracts to deliver an accurate and representative valuation of the business in question.