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
Industry | Entity Valued | Interest Valued |
Retail | Car dealership | 100% ownership |
Mining | Rock milling company | 100% ownership |
Real Estate | Real estate holding company | Minority interest |
Fast Food | Yogurt shop | 100% ownership |
Real Estate | Condominium project | 100% ownership |
Entertainment | Rock group | Partnership share |
Retail | Photo processing center | 100% ownership |
Insurance | Insurance company | 100% ownership |
Manufacturing | Plastic wrap manufacturer | Minority interest |
Public Relations | Marketing company | Minority interest |
Entertainment/Retail | Virtual reality store chain | Minority interest |
Garment | Dress design/manufacturer | 100% ownership |
Manufacturing | Thermoformed plastic manufacturer | 100% ownership |
Retail | Liquor store | 100% ownership |
Entertainment | Graphics design | 100% ownership |
Health Care | Medical practice | 100% ownership |
Legal Services | Law firm | Partnership share |
Advertising | Coupon sales company | 100% ownership |
Legal Services | Jury consulting and graphics firm | Minority interest |
Health Care/Finance | Medical receivables finance firm | Minority interest |
Entertainment | Rock group | Partnership share |
Consulting Services | Software research firm | 49% ownership |
Automobile | Automobile repair shop | 100% ownership |
Entertainment | Music royalties | 100% ownership |
Banking | Mortgage loan brokerage | 40% ownership |
Wholesale | Garment wholesaler/distributor | 50% ownership |
Real Estate | Real estate development company | Minority interest |
Retail/Wholesale | Automobile dealership | 60% ownership |
Retail | Automobile repair shop | 100% ownership |
Health Care | Hospice owner/operator | 100% ownership |
Entertainment | Record label | 100% ownership |
Computer Services | Radiology management software | Controlling interest |
Retail | Restaurant | 100% ownership |
Medical Insurance | Claims processing company | 100% ownership |
Entertainment | Cover band | 20% ownership |
Health Care | Radiology laboratory | 30% ownership |
Wholesale | Food distribution company | 100% ownership |
Manufacturing | Truck body manufacturer | 100% ownership |
Finance | Investment analysis company | 2.75% ownership |
Education | Private primary school | 100% ownership |
Computer Services | Tier III+ colocation company | 33.3% ownership |
Repair Services | Appliance repair company | 50% ownership |
Surveying Services | Drone images services company | Minority interest |
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.)










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