Whether you are an attorney, business owner, spouse, fiduciary, partner, or individual litigant trying to understand what a closely held business interest is worth, a useful valuation begins with the purpose, valuation date, governing documents, and financial records driving the opinion.
Business Valuation Services for Disputes, Buyouts, and Ownership Decisions
Quick Answer
Business valuation determines the defensible value of a closely-held company for divorce equitable distribution, partner buyouts, shareholder disputes under Fla. Stat. 607.1430, M&A transactions, gift and estate tax filings (IRC §§ 2031, 2512), ESOP transactions, lender refinancing, insurance loss claims, and IRS controversy. The forensic CPA applies the income approach (capitalized earnings, DCF), market approach (guideline public companies, transaction multiples), and asset approach when appropriate; addresses discounts for lack of marketability (DLOM) and lack of control (DLOC) using empirical studies; and prepares Daubert-defensible reports admissible in Florida circuit court, state appellate court, federal district court, and arbitration panels (Florida adopted Daubert 2013). Joey Friedman CPA PA, ABV-credentialed since 2008 and serving Hollywood FL and statewide, prepares valuations $3,000-$50,000+.
Joey Friedman CPA PA is a litigation-focused forensic accounting and business valuation firm. We do not prepare income tax returns or provide tax planning services. Our practice serves attorneys, businesses, and individuals in financial disputes, divorce, expert witness engagements, and forensic investigations.
Business valuations arise in many contexts — divorce and marital dissolution, shareholder disputes, estate and gift tax compliance, buy-sell agreement triggers, and partnership buyouts. Business owners facing a transition, spouses with an interest in a closely held company, fiduciaries administering an estate, and individual litigants all share the same foundational need: a credible, well-supported opinion of value grounded in the facts of the specific matter.
What to Gather Before a Business Valuation Engagement Begins
The quality of a business valuation depends on the information available before the engagement begins. Relevant documents include financial statements for the most recent three to five years, federal tax returns, articles of incorporation or partnership agreements, buy-sell agreements, any prior valuations, and the most recent balance sheet. Business owners, spouses with a community property interest, and fiduciaries should also identify the applicable valuation date — which may be set by statute, court order, agreement, or the date of the triggering event.
Expert Witness & Litigation Support
Beyond the written valuation report, business owners, spouses, fiduciaries, litigants, and their attorneys may need a credentialed expert to support disputes, negotiations, and proceedings across a range of forums. Joey Friedman, CPA ABV has provided expert witness testimony in state and federal proceedings in Florida and nationally. When a valuation dispute may require testimony, mediation, arbitration, rebuttal, or settlement analysis, the work should be organized so the assumptions, records, and calculations can be explained clearly to opposing parties, experts, courts, or other decision-makers.
Our expert witness and litigation support services include:
- Testimony and presentation support — preparation focused on methodology, data, assumptions, exhibits, and the questions likely to matter in deposition, mediation, arbitration, hearing, or trial.
- Rebuttal and critique reports — written critiques of opposing expert valuations with record-based analysis of methodology, assumptions, and conclusions.
Related litigation support services from Joey Friedman CPA PA include:
- Forensic Accounting — Financial investigation, fraud detection, and tracing of assets or income for litigation.
- Economic Damages — Lost profits calculations, business interruption analysis, and diminution-in-value opinions.
- Business Valuation Expert Witness Services — Dedicated page covering expert witness qualifications, engagement types, and prior testimony history.
- Fair Market Value vs. Investment Value Standards — Understanding which standard applies to your matter.
- Intellectual Property Valuation Services — Patent, trademark, and IP asset valuations for litigation, licensing, and transaction matters.
Business Valuation FAQ
Q: When should a business owner, spouse, fiduciary, or litigant request a valuation?
A valuation is appropriate whenever ownership, value, or a financial interest in a closely held business becomes disputed, taxable, or subject to a legal obligation. Common triggers include marital dissolution, a partner or shareholder buyout, an estate or gift requiring a reportable value, a buy-sell agreement event, or litigation involving lost profits or economic damages. The earlier a credible valuation engagement begins, the more useful the opinion is for negotiation, settlement, or court.
Q: How is a business valuation made defensible in a dispute or litigation setting?
Reports are prepared under AICPA SSVS No. 1 standards, reference recognized methodologies, and are structured so the assumptions, records, and calculations can be explained to opposing parties, experts, mediators, arbitrators, courts, or other decision-makers.
Q: What valuation engagements do you handle?
We handle divorce and marital business valuations, shareholder and partnership dispute valuations, estate and gift tax valuations, buy-sell agreement valuations, and damages-related valuations for breach of contract and lost profits claims. See our buy-sell agreement valuation services and Economic Damages practice.
Q: How long does a business valuation take?
Most engagements are completed within 4-8 weeks of receiving complete financial documentation. Accelerated timelines can sometimes be accommodated for both litigation and non-litigation matters when documentation is complete.
Q: What standards govern the valuation methodology?
All engagements are performed under the AICPA Statement on Standards for Valuation Services (SSVS No. 1). We apply recognized approaches – Income, Market, and Asset – and document our reasoning so the report can be reviewed and explained to opposing parties, mediators, arbitrators, courts, or other decision-makers. Learn more about fair market value vs. investment value standards.
Q: What is the difference between fair market value and investment value?
Fair market value (FMV) assumes a hypothetical arm’s-length transaction between willing, unrelated parties – the standard used in divorce, estate tax, and most litigation contexts. Investment value reflects the value to a specific buyer or owner. Courts and the IRS generally require FMV. See our detailed guide on fair market value vs. investment value.
Q: Can you provide a rebuttal to an opposing expert’s valuation?
Yes. Where an opposing valuation has been submitted, we provide a written rebuttal report that critiques the methodology, data selection, and conclusions – and offers an alternative value opinion. This is part of our forensic accounting expert witness services.
Q: Do you handle business valuations for shareholder disputes in Florida?
Yes. We provide fair value determinations under Florida’s dissenter’s rights statutes for buyouts, oppression claims, and partnership disputes. Our work includes forensic accounting for related financial investigations where needed.
Q: What are DLOC and DLOM, and do they apply to litigation valuations?
DLOC (discount for lack of control) and DLOM (discount for lack of marketability) are valuation discounts applied when an ownership interest represents a minority or non-marketable position. Whether they apply depends on the applicable standard of value and the jurisdiction’s case law – particularly in divorce and shareholder disputes. We analyze and document both discounts where warranted.
Q: How do I retain Joey Friedman CPA for a business valuation?
Use the confidential contact form to reach us.
Whether you are an attorney, business owner, spouse, fiduciary, partner, or individual litigant evaluating a closely held business interest, contact the firm for a confidential consultation about the records, valuation date, and financial questions driving the matter.