While most of our business valuation work is in the context of divorce proceedings, Frenkels Forensics is also regularly instructed to value businesses for some of the following reasons:
- The death of a small minority shareholder in a company. An example of this includes a case where there was a shareholder’s agreement in place and a minority shareholder died unexpectedly. We assisted the widow in making a reasoned case to the majority shareholders that in the circumstances they were paying too little to the widow. They increased the offer by a healthy 6-figure sum based on our numbers and a face to face meeting between all the parties. On our request, they even paid our costs too even though there was no obligation on them to do so.
Valuing a business/company on the death of a shareholder/partner for probate purposes for use by the executors for determining not only any Inheritance Tax liabilities but also to derive the appropriate figures to be paid to different beneficiaries.
Valuing a business on the resignation or retirement of one of the shareholders/partners. Often such valuations can be done on a single joint expert basis to try to limit the amount of costs the parties will have to pay. This work also includes assisting in determining, from a tax and operational point of view, the most efficient way of sharing out the business’ assets between the parties.
- We regularly value businesses as part of other forensic work that we do, for instance, valuing loss of goodwill of a business following personal injury where the claimant has either lost the business through permanent injury or has suffered from a reduction in capacity, with a resultant reduction in the value of the business. Also, fraud or mismanagement of businesses by key staff can result in lost business value and we quantify the losses in such cases too.
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