Determining the value of a business is needed for many reasons. In mediation cases one obvious reason is the dissolution of a business partnership but another reason is the divorce of a business owner or investor.
Regardless of the reason, ensuring that the valuation is accurate is paramount.
Attorneys involved in a case may each request their own business valuation (similar to dueling expert witnesses). Often attorneys have established referral relationships with individuals or companies that provide these valuations removing the choice from those involved.
One of the most important steps in mediation is to acquire services through a dually trusted professional. Mediation assumes and requires that all participants engage in full disclosure throughout the process. A single business valuation can provide the parties with the information needed to complete the divorce, separation, or partner dissolution mediation.
At CFR Mediation we encourage parties to seek accounting and business professionals that have completed additional training and demonstrated objective expertise in business valuations. Two possible sources for such professionals are National Association of Certified Valuation Analysts (NACVA) and The American Institute of Certified Public Accountants (AICPA) which offers an accreditation in business valuation.
It is imperative that both parties trust the professional selected, as only with true objective data can the parties work towards and efficient and effective resolution.