Business Valuation in Litigation

Business valuation in a litigation context arises from disagreements over the economic damages of a business or stakeholder. A business valuation expert witness resolves disputed amounts that result from business interruptions, breaches of contract, shareholders’ disputes and more.  A business valuation expert will need to calculate and demonstrate the value of the relevant interest as of the appropriate measurement date.

Business Valuation and CPA Expert Witness

Thomas Neches & Company, LLC has years of experience providing business valuation services in a broad range of industries.  We apply the appropriate calculation and valuation approaches depending on the specific facts and circumstances of the subject company.   Business valuation testimony typically is provided by the valuation expert to assist the judge and jury to better understand economic damages resulting from lost business value.

 

Representative Business Valuation Engagements


IndustryEntity ValuedInterest Valued
RetailCar dealership100% ownership
MiningRock milling company100% ownership
Real EstateReal estate holding companyMinority interest
Fast FoodYogurt shop100% ownership
Real EstateCondominium project100% ownership
EntertainmentRock groupPartnership share
RetailPhoto processing center100% ownership
InsuranceInsurance company100% ownership
ManufacturingPlastic wrap manufacturerMinority interest
Public RelationsMarketing companyMinority interest
Entertainment/RetailVirtual reality store chainMinority interest
GarmentDress design/manufacturer100% ownership
ManufacturingThermoformed plastic manufacturer100% ownership
RetailLiquor store100% ownership
EntertainmentGraphics design100% ownership
Health CareMedical practice100% ownership
Legal ServicesLaw firmPartnership share
AdvertisingCoupon sales company100% ownership
Legal ServicesJury consulting and graphics firmMinority interest
Health Care/FinanceMedical receivables finance firmMinority interest
EntertainmentRock groupPartnership share
Consulting ServicesSoftware research firm49% ownership
AutomobileAutomobile repair shop100% ownership
EntertainmentMusic royalties100% ownership
BankingMortgage loan brokerage40% ownership
WholesaleGarment wholesaler/distributor50% ownership
Real EstateReal estate development companyMinority interest
Retail/WholesaleAutomobile dealership60% ownership
RetailAutomobile repair shop100% ownership
Health CareHospice owner/operator100% ownership
EntertainmentRecord label100% ownership
Computer ServicesRadiology management softwareControlling interest
RetailRestaurant100% ownership
Medical InsuranceClaims processing company100% ownership
EntertainmentCover band20% ownership
Health CareRadiology laboratory30% ownership
WholesaleFood distribution company100% ownership
ManufacturingTruck body manufacturer100% ownership
FinanceInvestment analysis company2.75% ownership
EducationPrivate primary school100% ownership

 

 

Key Sample Business Valuation Engagement


Steven Adler v. Guns N’ Roses (Morton G. Rosen — Haight, Brown & Bonesteel).  The hard rock band Guns N’ Roses expelled its drummer, Steven Adler, due to his heroin addiction.  Adler sued the band and its managers, claiming he was denied his share of the band’s value. Adler valued his share of the band’s goodwill at $4,000,000 and unfinished and future business at $5,900,000.  Thomas Neches testified in Superior Court (Los Angeles County) on behalf of the band that value of the band’s goodwill was less than $1,000,000 and that Adler’s claims for unfinished and future business were overstated.  Result:  Guns N’ Roses settled out of court for $2,500,000 a few hours before the case would have gone to the jury.  (In a subsequent, unrelated engagement, Mr. Neches performed a similar analysis on behalf of the rock band Motley Crue to help resolve a dispute between the band and its lead singer, Vince Neal.)

IF YOU HAVE ANY QUESTIONS, PLEASE CALL THOMAS NECHES DIRECTLY AT 213.624.8150.

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