Gaylene Stingl and I have each done several business valuations in
collaborative cases. The primary focus is in educating the parties about the
various approaches that can be used in arriving at a value and how they may
apply in their case. This includes discussing discounts for minority
interests, lack of marketability and the "key person" issue. We let both
parties have their input about the business and what it means to the parties,
We allow some discussion on specific aspects of the business - the cash that is
brought home every week or all of the personal expenses paid by the business -
and we follow up on what that means and how it impacts value.
In collaborative cases, we do not say that the value is X but rather that it is
our opinion that it is in a range of Y to Z and discuss why we feel it is in
that range. The parties and their attorneys generally work through the
analysis with the parties and they arrive at an agreement. I have also seen
situations in which the parties have looked at the business value as the final
piece of the puzzle and see where the number falls in light of what they
believe an overall fair division of assets will be.
In the end, it is about the process and not about arriving at a single number.
Gregory J. Ksicinski, CPA/ABV, MST
Suby, Von Haden & Associates, S.C.
18650 W. Corporate Dr. #200
Brookfield, WI 53045
Direct: 262-923-5133
Fax: 262-641-6880
Email: ksicinskig@xxxxxxx
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