FVC1911. Cautionary Tales of Valuation Adjustments & Potential Forensic Implications in Legal Proceedings

Area of Expertise: 
The Self Starter
The Experienced Pro
The Trusted Leader
Field of Study: 
Accounting
CPE Credit: 
1.5
Knowledge Level: 
Overview
Advanced Preparation: 
None

Monday, November 4, 2019
 
4:00PM-5:15PM

Valuations of a closely held business in the context of litigation such as in a contentious divorce, shareholder dispute, damages matter or other litigated corporate matter can be multifaceted and may require additional forensic investigative scrutiny. As such, it is important to consider the potential forensic implications of valuation adjustments as they may lead to other analyses. For example, in a divorce business appraisal, a valuation adjustment for discretionary (personal) expenses may, in turn, provide an implied “true income” and pay ability of a spouse. In a dissenting shareholder matter, a valuation adjustment to true-up margins for variations in expenses not consistent with the industry/peers may insinuate dissipation of business assets and require further forensic investigations. These are but two examples - this session will address other examples you will likely face.
Learning Objectives:

  1. Evaluate financial statement adjustments and corresponding implications
  2. Interpret the need for forensic services as a result of valuation adjustments, such as tracing services, income determination, and other analyses.


SESSION SPEAKER(S)

CPA, ABV, CFF
Vice President | Mercer Capital