Donald John Miod, CPA, ABV, CVA, CBA
Founding Senior Partner
a case comes to an attorney because of financial problems in the marriage.
These financial problems only get worse because you now have two households
trying to live on the same income that the one household could not
live on before. An additional problem is that there is not enough
money in the marital estate to pay for a full-blown appraisal of the
business. You have clients who are getting along but just don't want
to be married to each other anymore. You can't help but think about
that pie chart Judge Black has drawn for you and your past clients
a hundred times before. You start to sketch one yourself, but the
pie is so small you can't read it. What are your options? Well, you
can call your local forensic accountant and call in a favor to help
you out and hope that they don't get hurt too badly. You can try and
do the business valuation yourself and hope you can sleep at night.
You can take advantage of the LE$$ product.
What is the Limited Evaluation Solution Service? (LE$$)
The Limited Evaluation Solution Service is just like it sounds, a
service that is a solution to those cases that cannot afford to do
an in-depth analysis. Also, like the name implies, it is more limited
in scope than a regular valuation. The scope of work means the parameters
or boundaries the work is being performed in. In this service the
client is limiting the scope in an effort to save money. You are not
going to get a shovel stuck into the business, by the forensic, to
uncover perquisites. You are going to ask us to assume what they are
based on information from your client.
What you will get is a cost-effective analysis of historical
earnings of the business, together with market research for that particular
industry. This, together with certain assumptions you will be asked
to supply, will enable us to supply an estimate of the value of the business.
Assumptions, assumptions, assumptions
In order to make this cost effective solution work, we need to be
supplied certain bits of information about the earnings of the business
which may not be stated in the financial documentation you and your
client will supply. This will include information about cash taken
from the business, if any, which is not reported anywhere, perquisites
that are run through the business expenses, and any other benefits.
In order for this to work your clients should be knowledgeable about
the business and the benefits just described. This will permit us
to use these assumptions, in performing our work, and thus save a
lot of money.
What type of client can benefit from this service?
The clients that can benefit from this service have the following
1. Has knowledge of the business
2. Seeks only a reasonable estimate
3. Has knowledge of the "extra benefits" derived from the business
4. This service is also a good choice when cooperation is excellent
between the parties and they wish to retain us jointly.
What does this service cost?
The cost to your client is a flat fee
of $950 and can be credited towards a full service
business valuation if the case needs to go further. See " Testimony
in Court" for more information.
Naturally you and your client will need to sign an engagement letter
so that everyone understands the level of work being performed. One
of the frustrating things a client can experience is the difference
between expectation and reality. This engagement letter, properly
explained by the attorney should help keep this from happening. Should
the case not settle, and you need to have a regular valuation service,
we will need to execute another engagement letter.
What type of client does this type of service not work for?
The type of client this service does not work for is one who is trying
to make their spouse's life miserable, or get even, no matter what
the cost. It also does not work for larger size businesses or for
those clients who have been kept totally in the dark. They should
have an understanding of the general workings of the business and
the level of work performed by their spouse.
This service is also not for those cases where the records are unreliable
and need further investigation that cannot be overcome by making assumptions.
LE$$ is not for everyone. It can, however, assist those attorneys,
and clients, who need to get a "ballpark" figure for a business in
order to help bring a case to a timely economic conclusion.
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