Blogs
Rebutting the Opposing Expert: A Strategic Framework for Valuation Disputes
In any contested business valuation case — whether in divorce, partnership dissolution, or commercial litigation — the battle is often won or lost on the strength of the rebuttal. A well-constructed rebuttal does not simply disagree with the opposing expert’s conclusion. It systematically identifies and exposes the specific errors, omissions, and analytical weaknesses that undermine the reliability of the opposing
Due Diligence Red Flags: What Buyers Look for and What Sellers Should Fix First
Due diligence is the moment of truth in any business sale. It is where the narrative the seller has carefully crafted meets the scrutiny of buyers, lenders, and their advisors. For sellers, the goal is not to survive due diligence — it is to excel at it. The businesses that command premium valuations are the ones where due diligence confirms
Building a Value-Ready Business: 12 Months Before You Sell
You have decided it is time to sell your business. Maybe you are ready to retire, pursue a new venture, or simply capitalize on the value you have built over the years. The question is: is your business ready for you to sell it? Most business owners dramatically underestimate the preparation required to maximize their sale price. The companies that
Multi-Entity Divorce Cases: How to Value a Business Owner’s Complete Empire
Some of the most complex divorce valuations involve business owners who operate through multiple entities — a combination of operating companies, holding companies, real estate LLCs, management companies, and investment vehicles that together form an interconnected business empire. These structures are common among successful entrepreneurs and are often established for legitimate tax, liability, and operational reasons. In a divorce context,
Understanding DLOC and DLOM: Why Your Business May Be Worth Less Than You Think
If you own a minority interest in a business — say, 30 percent of a company valued at $5 million — you might reasonably assume your interest is worth $1.5 million. In practice, your interest could be worth $900,000 or less. The reason lies in two valuation discounts that many business owners have never heard of but that can dramatically
The Role of the Expert Witness in Business Valuation: What Attorneys Should Expect
Business valuation disputes are increasingly common in family law, commercial litigation, and partnership dissolution cases. When these disputes reach the courtroom, the quality of the expert witness can determine the outcome. Yet many attorneys — particularly those who do not regularly handle valuation cases — are uncertain about what to expect from their expert, how to evaluate competing expert reports,
Seller Beware: How to Read a LOI and Protect Your Valuation
The Letter of Intent is one of the most consequential documents in a business sale — and one of the most misunderstood. Business owners often treat the LOI purchase price as a firm number, when in reality it is a starting point that can shift significantly by the time the deal closes. Understanding the valuation-related terms embedded in an LOI
Reasonable Compensation Analysis: The IRS Red Flag You Can’t Afford to Ignore
If you own an S-corporation or closely held business and you are paying yourself a salary that is significantly below market rates — taking the difference as distributions to avoid payroll taxes — you are operating in one of the IRS’s most actively targeted enforcement areas. Reasonable compensation is not a gray area to the IRS. It is a documented
Valuing Franchise Businesses in Divorce: Complexities Most Experts Miss
Franchise businesses occupy a unique space in business valuation — especially in divorce proceedings. They combine the structure and brand recognition of a national system with the operational realities of a locally owned business. This hybrid nature creates valuation complexities that many experts either oversimplify or overlook entirely, leading to conclusions that can be off by millions of dollars. For
5 Valuation Mistakes Business Owners Make Before Selling Their Company
After three decades of buying, building, and selling businesses, I have seen the same valuation mistakes repeated across industries, company sizes, and owner demographics. These are not obscure technical errors — they are fundamental misunderstandings that routinely cost business owners hundreds of thousands of dollars at the closing table. If you are contemplating a sale in the next one to
What Is a Quality of Earnings Report — and Why Your Deal Needs One
You have found the right acquisition target. The financials look strong, the asking price seems reasonable, and the seller is motivated. Before you shake hands and move toward closing, there is one critical step that can protect your investment and prevent costly surprises: the Quality of Earnings report. Whether you are a business buyer conducting due diligence, an M&A advisor
Personal vs. Enterprise Goodwill: What Every Family Law Attorney Needs to Know
In Texas divorce proceedings involving a closely held business, few issues generate as much contention — or as much variance in expert opinions — as the distinction between personal and enterprise goodwill. Getting this classification wrong can swing the marital estate by a million dollars or more, making it one of the most consequential determinations in high-asset divorce cases. For