Disputes within a company might be regrettable but they are part and parcel of the business world.
The disagreements can vary in their nature; they might stem from needing a business valuation to establish the price of an individual’s share of the business, or it could be establishing the exact losses caused by professional negligence. Importantly, when discussions grind to a halt and the two parties are at loggerheads, forensic accounting can play a critical role in finding a fair resolution to the problem.
In one particular case we dealt with, we were asked to act for the directors of a property company who had an internal dispute with another senior colleague who stood accused of breaching their fiduciary duty by purchasing properties for both himself and the company from the same estate.
In this instance the actions of the senior employee were found to have cost the property company money; the individual overspent on the properties in an attempt to keep the prices on the estate as high as possible for their own gains. We conducted extensive analytical work and enabled the directors to recover £140,000 from the director in question.
This is just one example. Another simple one would be that a shareholder in a company is looking to sell their stake back to other shareholders but the two parties cannot agree upon a fair price. Forensic accounting can establish the exact value of the business, thereby taking personal bias out of the equation.
In heated business disputes, a forensic approach relying on in-depth analysis can often be the best option for a fair resolution – this is something we pride ourselves on, and have done for over 30 years.
For help in settling a company dispute contact Frenkels Forensics for an expert and independent appraisal.
We can help assist individuals, companies, lawyers, barristers and accountants in finding a fair solution to a variety of problems. If you’re looking for advice in any aspect of forensic accountancy, then do get in touch via Twitter, Google+, LinkedIn or by visiting our website www.frenkels.com.
By Vitek Frenkel – find me via Google+.