An organisation may need to be valued for many reasons: the owner wishes to sell, a shareholder wishes to exit the business or for the purposes of shareholder and matrimonial proceedings.
Disputes between business partners can often be vigorously fought, time consuming, costly, and ultimately detrimental to the business. The impact of a dispute on a company or partnership business cannot be underestimated. The dispute can become so bitter that it destroys the object of the dispute – the business itself. This is particularly so when the business is small. The greater the number of individuals in a business the less personal it will become. Many businesses, even though carried on through a limited company, have the characteristics of a partnership, and may have started out as partnerships before incorporation. An equitable mechanism is required to prevent disputes, and to resolve them if they should arise.
In the unfortunate case that a dispute arises between shareholders or partners, it is advisable to use an independent expert who will focus on the facts to rectify the situation as quickly as possible.
RSM Tenon has a wealth of experience in dealing with partner and shareholder disputes. Our team of forensic accountants will fully investigate the issues that are relevant to the dispute, which are generally financial and could include: lack of dividend, conflicting focus and effectiveness of the partners to generate profits, valuation of work-in-progress, and tax issues on exit or dissolution of partnership. We will then provide the necessary services to resolve the situation.
In addition to providing litigation support services, we can also provide a qualified and experienced commercial mediator where it is thought that facilitated negotiations may bring matters to a mutually satisfactory conclusion, without the need for litigation.
Why would you need it?
- You are a solicitor and need to appoint an accountancy firm to value a business and act as an independent expert witness
- You need an accountant to help value your business for the purposes of tax planning, shareholder transactions or potential sale and purchase