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Business Valuation Standards

By Robert E. Schlegel and Chris Hines

Why should a matrimonial attorney pay attention to business valuation standards? Quite simply, because your knowledge can yield big judgment dividends by supporting your valuation expert or by impeaching the credibility of the opposing expert.

Observance of professional standards distinguishes an expert opinion from fact testimony. Not all standards are applicable to every appraiser, yet quite often two or more sets are applicable to an individual expert who is multi-credentialed or touts membership (even candidacy for a designation) in several organizations. Adherence to standards implies an expert analysis that is diligent, reliable, and verifiable with accepted professional procedures: experts who follow recognized standards are far less likely to fall victim to Daubert challenges. Conversely, experts who fail to perform work in accordance with recognized standards are subject to criticism and may have their credibility impugned by sharp opposing counsel.

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