When I have to testify regarding my opinion of value regarding the ownership interest in a business, I have found a particular strategy that speeds up my time on the witness stand. The strategy often helps settle not only business valuation differences between appraisers, but those relating to economic damages cases as well – before they get to the courtroom.
For example, if the litigated matter involves a business valuation, I prepare a schedule showing, in summary fashion, the components that make up the pieces of my valuation. I also show on the schedule how the opposing expert treated the same parts. Many times we will have several of the components in agreement. Those parts where we are in disagreement are highlighted. If the case goes to trial, the judge or jury can then focus on the parts of the two experts’ reports where they show disagreement.
This type of schedule saves time in the courtroom because attorneys do not have a need to ask questions regarding every figure used by each expert in arriving at their final conclusions of value of a business interest or the amount of economic damages calculated. I have used this schedule to collaborate with opposing experts on both business valuation and economic damages cases. The schedule simplifies the areas where our calculations are different and promotes compromise between experts towards efforts to narrow the gap of disagreement to a range acceptable by the opposing parties.
By Don Bays, CPA/ABV, CVA, CFF