How a Litigation Valuation Protects Your Financial Interests
Legal disputes can be long, costly, and negatively impact your business. Different types of legal disputes can alter the value of your business in various ways. A litigation business valuation can help you prepare for a legal dispute’s effects on your business. It will also help you understand the changing value of your business and maximize its value. As such, a litigation valuation protects your financial interests and your business.
Peak Business Valuation, business appraiser, values hundreds of businesses annually for litigation. With a litigation valuation from Peak, you can prepare for litigation and minimize the potential downsides. Additionally, a litigation valuation report from Peak will aid you in each step of the litigation process. Schedule a free consultation with Peak to get started on a litigation business valuation.
What is a Litigation Valuation
A business valuation is a financial assessment of a business. Business appraisers analyze financial statements, key value drivers, and more to assess the fair market value of a business. They implement a combination of valuation methods, the most common being the income, market, and asset approaches to make their assessment. Valuation analysts also use tools such as normalization, adjustments, and discounts to determine an objective measurement of value.
In this article, we discuss several ways that a litigation valuation protects your financial interests. For a more comprehensive analysis of your business and situation, schedule a free consultation with Peak. You can also read Understanding a Litigation Business Valuation to learn more.
Settlement & Court Negotiations
The negotiation process is an essential element of a legal dispute. This can come in the form of settlement or in-court negotiations. Successful negotiation can save you time and money in a legal process. In either case, a professional litigation business valuation helps you during these negotiations. A valuation can also help you determine a legal strategy prior to court proceedings or negotiations. Using a litigation business valuation will help you maximize your return from negotiating. Read Litigation Valuation for a Legal Dispute to learn more.
Insurance Claims
Many firms estimate that around 35% of small businesses each year experience an event that could lead to an insurance claim. Insurance claim disputes can cause headaches and added difficulty when trying to recoup damages. A litigation business valuation can help bolster an insurance claim for disputed claims. A business valuation also provides a clear assessment of financial damage and a business’s changing value. Additionally, insurance companies frequently require a valuation of assets or property involved in the claim. With a litigation business valuation, you can simplify the claim process and get the most out of your claim.
Divorce & Partnership Disputes
Divorce and partnership disputes are among the most common forms of litigation in a business. In the case of divorce, a business is frequently the most valuable asset involved. Ownership contribution and equity can also greatly influence a divorce or partnership dispute. A litigation business valuation provides clarity and a common understanding of a business’s fair market value. With this, both parties can agree on the value of a business. A business valuation also accounts for ownership changes or buyouts when determining a business’s value.
Peak Business Valuation is happy to provide you with a professional business valuation for litigation support. A litigation valuation protects your financial interests by providing you with a clear understanding of a business’s value. Peak also has a team of experts who can guide you through the valuation process. Learn more about litigation valuations at Using a Litigation Valuation to Strengthen Your Legal Case and Reasons to Obtain a Business Valuation for Litigation Support. You can also schedule a free consultation below to connect with Peak’s team of professionals.
Division of Assets
In some legal cases, either a settlement agreement or a court order requires a division of assets. Dividing assets can be complicated, especially when there are discrepancies regarding the value of an asset. When the true value of an asset isn’t known it is very easy for one party to receive less than the other. A business valuation protects against this. A professional valuation determines the fair market value of a business and its assets. Using this valuation can ensure that each party is fairly compensated according to the agreement.
Tax Planning & Compliance
Many legal disputes have to do with succession planning or inheritance issues. A litigation business valuation simplifies the process for both inheritance and succession cases. Using a business valuation allows all interested parties to understand the fair market value of a business. Especially in the case of inheritance, this can help facilitate fair compensation or division of a business.
The Valuation Report
A key element of a business valuation for litigation support is a valuation report. The valuation report is a complete summary of the valuation. This includes an analysis of the risks and opportunities of a business, as well as the fair market value. The valuation report is helpful for all of the factors mentioned in this article. The valuation report contains all the information necessary to make strategic decisions. Using the valuation report also aids in risk management and maximizing the value of a business.
Conclusion
If your business is involved in a legal dispute, a business valuation is essential. Obtaining a business valuation for litigation will help you minimize the negative impacts of litigation. It can also help you set strategy and negotiate. Each of these elements in a litigation valuation protects your business and your financial position. Additionally, you can use a litigation business valuation in court and back it up with expert witnesses. Using an expert witness in your legal dispute can also help you get the most out of legal proceedings. Check out Expert Witness for a Litigation Support Valuation for more about expert witnesses.
Peak Business Valuation has years of experience valuing small businesses. As such, we work with many businesses involved in legal disputes, guiding them through the valuation process. Peak also has a team of qualified experts that can serve as expert witnesses in court. With a business valuation from Peak, you will be better prepared to maximize the value of your business even through difficult litigation proceedings. Schedule a free consultation with Peak below to get started today!
