A divorce can be a complicated, heart-wrenching and often frustrating process; even when both of you agree it is the best step. When one or both spouses own their own company, getting a valuation that reflects the value is critical. At Turken & Porzenski, L.L.C., we have experience representing clients whose divorce proceedings include business valuation and division.
A business may not only represent your most significant asset, but it may also be your livelihood. A value must be agreed upon before you, and your spouse can complete the settlement. Gelman, Rosenberg & Freedman report that, unlike the valuation of property or other tangible assets, valuing a business can be complex and there are several factors involved.
The value of your company greatly depends on the industry outlook and business sector. Depending on the state of the industry, its worth may increase or decrease at any given time. The expected cash flow and other performance measures differ from one sector to another. The age of the company also affects its value. A mature organization may or may not receive a higher appraisal value than a young company.
An impartial valuation expert with industry experience in the right sector is a necessity. They require awareness of the key factors that influence the value of your business before they begin the discovery phase. Financial statements, identification of critical strengths and weaknesses and the contributions of partners or stockholders form the foundation of the full appraisal.
Well-qualified experts hold the appropriate certifications and experience to have credibility. Once their credentials are satisfied, appraisers can offer expert testimony and work with the attorney if your case goes to court. Visit our webpage for more information on this topic.