Valuation Provisions within Buy-Sell Agreements
Presented by CapVal’s Martin Mathias, CPA, CFE
Attorneys draft buy-sell or operating agreements regularly for their business owning clients. But what about those paragraphs dealing with the valuation provisions? How will the business be valued? These become the most critical paragraphs when a triggering event occurs, and triggering events include far more than just death or disability of an owner. Ultimately, an agreement between business owners should reflect the owners’ intent—which means boilerplate language does not work.
In this course we will cover why such phrases as “Fair Market Value” and “Book Value” are not sufficient direction to a business appraiser and why formulas don’t work. We will share a matrix our firm has developed for determining the intent of the owners under all six triggering events so attorneys can easily insert unambiguous valuation provisions into these important agreements.
Economic Damages in Litigation
Presented by CapVal’s Jane Tereba, ASA, CPA, CEPA
Lost contributory profits analysis is applicable when a business has been damaged or a business segment has been destroyed but the business itself continues. The idea behind this approach is that a damages award for lost contributory profits should return to the business the profits it lost because of the alleged damaging act. These profits would otherwise have been available to the business to contribute to covering the business’s overhead expenses.
This course will help you understand how a financial expert performs a damages analysis, including identifying areas of potential lost profits, determining the damages period and determining the discount rate for calculating the present value of damages.
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