How Forensic Accountants Work With Company Disputes

How Forensic Accountants Work With Company DisputesCompanies are complex dynamic entities that never stand still. They are either getting more profitable or less profitable but never stagnate in the middle. Competitiveness can be healthy but it can lead to acrimony and litigation as companies steal from each other, partners fall out, employees embezzle money, due process is not followed properly, and suppliers hold companies to ransom among many other issues; the consequence of which is that there are very many company disputes to sort out.

To date one of the biggest has been the savage, much-publicised intellectual property dispute between Samsung and Apple over their smart phone and tablet patents, together with allied complaints. This prompted a three-year, multi billion-dollar lawsuit in which Apple may have won the war but Samsung, strangely enough, has won market share.

Although this is a global, well-publicised company spat that seemingly affects us all; every day on a quiet street around the corner from where you live, a company – whether an anonymous bicycle shop, plastics manufacturer, bakery or even Rolls Royce will be smarting or reacting to an ongoing company dispute. This can be internal – for example, the shareholder who resurfaces several years after being paid off, claiming that the paperwork was not legal, or external whereby one company is cheated, underpaid or taken over by another.

It is Frenkels Forensics’ job to use their experience and expertise to perform share and business evaluations, quantify losses arising from a breach of contract or partner fall-out and provide clear understanding of the commercial, financial and legal issues at stake.

As well as the black and white legal rulings over who is right and who is to blame in any dispute, there is a grey area in terms of the damages suffered such as lost revenue, lost reputation and lost opportunities to grow the business… There may also be a case of professional negligence should the company have been given the wrong advice by banks or insurance companies or financial advisors.

Frenkels Forensics are called in to many disputes to provide thorough and accurate financial evidence in the form of a report presented to the court.

If you’re looking for advice in any aspect of forensic accountancy, then do get in touch via TwitterGoogle+, LinkedIn or by visiting our website

By Vitek Frenkel – find me via Google+

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