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.)

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

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