Shareholder disputes often require the valuation of business interests or the calculation of damages pursuant to the separation or death of an owner, allegations of mismanagement, diversion of funds, excessive compensation or perquisites of management, and accounting irregularities or oppression. EisnerAmper is retained to assist counsel, business owners and the courts in resolving disputes among owners of privately held entities, whether sole proprietorships, partnerships, limited liability companies or corporations. Our team has provided consulting and expert testimony in shareholder disputes across diverse industries from start-ups to established second- and third-generation businesses.
EisnerAmper professionals have extensive forensic accounting and valuation knowledge and broad based experience in analyzing historical accounting and business records to determine what a business’ actual profits and cash flows should have been for determining shareholder value and damages for rightful distributions. We thoroughly understand there are emotional aspects to these matters and we work to gain the trust of the parties involved to assist in discovery and resolution.
Appropriate methodologies must be followed in evaluating the specific facts and circumstances of each matter and we are skilled in preparing comprehensive and supportable valuation reports that comply with governing standards. This has allowed our professionals to assist in successfully resolving cases without proceeding to court, thereby reducing costs. Our professionals possess the requisite credentials, and have extensive experience in providing expert testimony to successfully defended our reports and rebutted other expert reports in court.
Examples of services offered in shareholder disputes include:
- Investigation of misappropriated funds.
- Quantification of damages for lost distributions.
- Damages for the lost value of a terminated member interest.
- Fair value of an oppressed shareholder interest.
- Valuation of a ownership interest in a shareholder or partnership dispute.