You may require a forensic accountant business valuation for a variety of reasons. For example, you may need to value a business for the purposes of divorce proceedings or in the context of a shareholder’s retirement. Whatever your reason, our specialist forensic accountants are here to help. With decades of experience producing forensic accountant business valuations and a strong emphasis on client care, we are the perfect choice for anyone in need of forensic accountancy support.
To discover more, please call us on 0330 118 8200 or Make An Online Enquiry.
When might you need a forensic accountant business valuation?
At Frenkels Forensics, we are called on to prepare forensic accountant business valuations in a range of situations. Some of the most common include the following:
• Divorce proceedings.
When a couple’s assets include business interests, a forensic accountant business valuation is often required to facilitate a fair financial settlement. The forensic accountants in our divorce team are specialists in this area and have in-depth insight into the factors that must be considered when valuing a business in the context of divorce proceedings.
• When a shareholder in a private company dies.
When a shareholder dies, their share of the company will need to be valued to allow the executor to realise its value for the beneficiaries and inheritance tax purposes. It can be a period of disruption, confusion, and uncertainty for the remaining shareholders and company directors, and a forensic accountant business valuation can provide some much-needed clarity.
Valuing a shareholding in a private company requires specific expertise. The forensic accountant will need to review a variety of documentation, such as the Articles of Association and any Shareholders Agreement, and consider key issues, including whether the shareholding is a minority or majority shareholding and if the remaining shareholders might be willing to pay a premium to acquire the shares.
Our forensic accountants have valued countless businesses following the death of a shareholder. We understand the need to minimise any disruption to the business’s commercial operations and work swiftly to prepare a fair valuation.
• When a business owner has suffered a personal injury.
When a business owner suffers harm in a no-fault accident, their business interests can suffer if they are unable to run the business while they recover or return to work at all. The financial losses they incur as a result can be included in their claim for Special Damages against those responsible for the accident.
Our personal injury team frequently prepares forensic accountant business valuations when calculating the damages due to personal injury Claimants. We have long-standing relationships with many of the UK’s leading personal injury firms, acting for both Claimants and Defendants.
• When a partner or shareholder is leaving the business.
When a partner or shareholder leaves the business, the affected parties often appoint a single joint expert to prepare a forensic accountant business valuation. This strategy limits the potential for disagreements and reduces the costs each party must pay to ascertain the value of the exiting shareholder or partner’s share of the business.
In addition to valuing the business, a forensic accountant business valuation can also assist in establishing how the business’s assets can be distributed in the most cost and tax-efficient way.
How do we prepare a forensic accountant business valuation?
Preparing a forensic accountant business valuation is an art, not a science. It requires a consideration of a wide range of factors, which vary depending on the nature of the business in question.
Just some of the matters we may need to consider include the following:
- The business’s legal status, for example whether it is a partnership or limited company.
- The business’s commercial operations, for example, its products, client base, size of contracts, and competitive advantages and threats.
- The business’s human resources, for example, its employees’ skills and experience, any key personnel, and the relationship between the workforce.
- The business’s financial performance, for example, its turnover and operating costs.
- The business’s balance sheet, for example, its assets and liabilities.
- The business’s finance arrangements, for example, its working capital management, bank facilities, and security.
- The business’s financial forecasts and future plans, for example, if the business has plans to expand or merge in the near future.
- The nature of, and trends in, the sector in which the business operates and how these might impact its value.
- Whether the shareholder in question is integral to the business such that it might be appropriate to apply a key person discount to reflect their loss.
Once we have completed our forensic accountant business valuation, we will present our findings in a clear, straightforward report. The interested parties can then use our report in their negotiations or at Court where necessary, confident in the knowledge that our findings are a true and accurate reflection of the business’s value.
To discover more, please call us on 0330 118 8200 or Make An Online Enquiry.
“Thank you ever so much for the work and advice you have provided . The report was clear and accessible and will not hesitate to recommend you all.”
“I am indebted to you for your contribution, and for explaining things in plain English such that even lawyers can understand the issues”
“May I take this opportunity to thank you for your assistance in this matter. Counsel and the judge said that your report was one of the best they had seen in that it was concise and technically easy to understand.”