TBC Information Network

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

Owner & Post Acquisition Disputes

Disputes between owners arise for a number of reasons. Our forensic accounting services assist owners with investigations regarding entitlements to profit sharing or dividends, non-business related expenditures, unreported income, conflicts of interest, etc. The findings from our forensic accounting analyses are sometimes incorporated in business valuations prepared pursuant to dissenting shareholder actions.

On a somewhat related note, most post-acquisition disputes involve some form of financial forensics.  Our forensic accountants have investigated the accuracy of payments made pursuant to earn-out provisions of a sale.  Such provisions are specific to each agreement.  As a result, the financial investigation entails obtaining and analyzing the financial documents necessary to recalculate and assess the accuracy of the payment(s) as compared to the earn-out provisions as defined in the related agreement.  The timing of recording transactions, allocation of indirect expenses, revenue recognition, classification of expenses, are some examples of our considerations during such analyses.