TBC Information Network

Teal, Becker & Chiaramonte offering valuable insights, impressions and commentary on today's financial and business world.

Business Owner Disputes

Business owner disputes typically result from a minority owner who feels that he/she has not been treated fairly by those who have control of the entity. When a minority owner feels that the controlling owner is taking advantage of or mismanaging the company, a lawsuit frequently arises. In addition, lawsuits can also be triggered when an owner believes he/she has been financially mistreated or wrongfully squeezed out of the company altogether. Most jurisdictions have enacted oppressed shareholder or dissolution statutes to protect the minority owner(s) from the abusive power of the majority owner(s). Under such circumstances, different remedies require unique analyses. In the instance where the company will buy back the ownership interest from the oppressed or dissenting owner, a valuation of the ownership interest in the company, based on fair value standard, is required. Alternatively, where mismanagement of the company resulted in a dilution in value of the ownership interest, a different measure of damage needs to be undertaken. The valuation professionals at TBC have significant training and experience in valuing ownership interests relevant to business owner disputes. Additionally, our forensic accounting professionals are also utilized on these cases to investigate various allegations of one or both parties to the lawsuit, if applicable. We work closely with clients, attorneys, and other professionals to develop preliminary calculations for settlement negotiations and/or comprehensive valuation reports suitable for submission to the court.

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