Using a Litigation Valuation to Strengthen Your Legal Case
Are you involved in litigation proceedings for your business? Legal disputes can be very costly and damaging to a business. They also create stress and uncertainty for business owners who must navigate them. Because of this, business owners must present the strongest case possible. Obtaining a litigation business valuation is a great way to strengthen your legal case. Whether involved in a partnership dispute, insurance claim, or other type of litigation, using a litigation valuation will help fortify your case.
Peak Business Valuation, business appraiser, values businesses nationwide. Peak has years of experience valuing businesses in litigation for various reasons. Our team of valuation professionals will work with you to understand the value of your business. Using this will help you make strategic decisions during the legal dispute and maximize the value of your business. We are also certified to serve as expert witnesses in court cases. To learn more about how using a litigation valuation can strengthen your legal case, schedule a free consultation with Peak today!
What is a Litigation Business Valuation
A litigation business valuation is an analysis of the financial standing of a business. Business appraisers use financial records and valuation methods to determine the market value of a business. Valuation professionals may also apply discount rates to a business based on the damages incurred by the legal dispute. Reasons business owners may need a litigation business valuation include insurance claims, divorce, partnership disputes, or customer lawsuits. A litigation valuation helps business owners understand their business’s value and future opportunities. To learn more, see Understanding a Litigation Business Valuation.
Why a Litigation Valuation is Important
As mentioned, a litigation valuation helps business owners understand the value of their business. With this knowledge, business owners can make legal decisions for their business with the best information available. A litigation business valuation can also help you deny accusations or make claims based on fact. Litigation valuations are useful for many reasons, but we have included some of the main ones below. You can also read The Importance of a Litigation Valuation in Court to learn more.
Negotiation Strategy:
Understanding and using an accurate litigation valuation can help strengthen negotiation strategy. Many law firms estimate that only about 5% of business lawsuits proceed to trial. This means that the remaining 95% settle outside of court. A litigation business valuation will assist you in setting a negotiation strategy if you are looking to settle.
Court Proceedings:
If a lawsuit does proceed to trial, a litigation valuation will prove essential in court. Judges typically require a professional valuation to consider any argument made about the value of a business. Using a certified business valuation from Peak will strengthen your legal case in the eyes of a judge.
Market Value:
A key element of a business valuation is determining the market value of a business. Having an accurate understanding of the financial standing of your business is critical to making a legal case. Many legal disputes, such as partnership/divorce disputes or insurance claims, have results based on the value of a business. A litigation valuation from Peak will help you ensure that you are fairly compensated based on the worth of your business.
Ownership Contribution:
A litigation business valuation also assesses intangibles such as risk and ownership contribution. This assessment will help you understand how changing levels of ownership contribution will affect the value of your business. Knowing the value of your contribution can be especially helpful for partnership and divorce disputes.
Asset Valuation and Distribution
In some instances, the settlement or court ruling requires the dissolving or dividing of a business. Making sure that each party gets fairly compensated can be complex and time-consuming. In these cases, it is important to have an accurate valuation of the assets owned by a business. Peak Business Valuation frequently values all types of assets and can include an asset valuation in your litigation valuation.
Expert Witnesses in Litigation
To consider a business’s value in court, judges usually require an expert, third-party business valuation. During a legal case, business appraisers may need to testify as expert witnesses in court to explain their valuation and testify to its accuracy. To serve as an expert witness, individuals must have the proper credentials and certifications to testify. Using a litigation valuation and appraiser’s witness will increase the validity of your case in court. See Expert Witness for a Litigation Support Valuation to know more about expert witnesses.
Peak Business Valuation has a team of certified valuation professionals who can serve as expert witnesses in litigation. We can provide you with a litigation valuation and testify in open court about the valuation. We can also help you understand litigation valuations and expert witness services. Schedule a free consultation with Peak now to get started!
Using the Litigation Valuation Report
As part of a litigation valuation, you will receive a litigation valuation report. This report is a summary of the strengths, weaknesses, risks, and opportunities of your business. It will also include the market value as assessed by professional business appraisers. Legal settlements and court decisions are typically based on the current value and future growth potential of a business. Using the litigation report in your case will increase the likelihood of reaching a favorable outcome.
Counsel with your Legal Team
In addition to providing a litigation valuation, Peak Business Valuation can collaborate with your legal team to better understand the valuation report. When your legal team understands the worth and value drivers of your business, they can prepare the best strategy possible. Reach out to Peak today to learn how we can help your legal team understand the valuation report.
Conclusion
No matter the legal dispute, using a litigation valuation to strengthen your legal case is critical to getting a favorable outcome. Using the identified market value and valuation report in your preparation will be a difference maker in your case. It can also give you greater confidence and understanding of your business.
Peak Business Valuation has years of experience valuing businesses for litigation. Our team of business appraisers can accurately value your business and even serve as expert witnesses. Working with a professional valuation team during legal disputes will help you achieve your desired outcome. If you have questions about litigation business valuations or want to get started, schedule a free consultation with Peak below.
