Expert Counsel for Valuation Issues in Complex Litigation
When disputes arise involving the value of a closely held business, the stakes are high. Whether it’s determining the value of an ownership interest, assessing reasonable compensation, or resolving contested goodwill, these matters demand not just knowledge of business law but also expertise in financial analysis, recognized standards and methods of business valuation, and specific law applicable when the value of a business is under consideration.
In many cases, valuation is a core issue. Effective advocacy in corporate governance disputes, high-stakes divorces, commercial litigation, and negotiated transactions often requires assessing and presenting valuation issues. Valuation advocacy is a multidisciplinary skill, requiring the application of a variety of legal principles, accounting principles, trust, estate, and tax laws, and a grasp of the local and national economies.
Our business and divorce lawyers are well-versed in valuation issues. Our practice has one of the few dedicated business divorce practice groups nationwide, a practice niche that typically turns on business value. Jay McDaniel, who chairs the Weiner Law Group’s Corporate and Business Law Department and heads the Business Divorce Practice Group, is also a Certified Valuation Analyst and a Certified Exit Planner.
Business valuation, it is often said, is an art, not a science. The effective valuation lawyer appreciates the principles and nuances that are the art of valuation in practice and application. Jay brings over 30 years of experience as an attorney for closely held businesses in litigated disputes and his training and certification as a valuation analyst and exit planner.
Jay and his team work with business owners, their regular counsel, and other attorneys in preparing and litigating valuation cases. He offers a unique combination of legal expertise and financial acumen to deliver results in valuation-driven disputes.
Our valuation services encompass every phase of the litigation process, including vetting experts, analyzing opposing reports, conducting depositions, and shaping courtroom testimony.
If you require New Jersey business valuation services, get in contact with Weiner Law Group today to schedule a consultation with Jay McDaniel.
Valuation Services Tailored to High-Stakes Disputes
Weiner Law Group’s valuation practice practice focuses on litigated valuation issues, which often involve:
- Shareholder Disputes: Minority owner buyouts, dissolution cases, dissenter’s rights, and appraisals.
- Determination of Fair Value: Assisting clients and co-counsel to develop workable and effective standards of fair value that are at the heart of many business disputes.
- Closely Held Corporations, Limited Liability Companies, and Partnership Breakups: Addressing and Prevailing in Valuation Disputes When Business Owners Separate.
- Business Sales or Mergers: Addressing valuation conflicts in sales, acquisitions, or joint ventures.
- Divorce Proceedings: Handling valuation complexities in the division of business assets.
- Litigation Over Personal and Enterprise Goodwill: Differentiating personal goodwill from business assets in valuation cases.
- Trust and Estate Litigation: The value of a business as an asset can be the subject of disputes in trusts and estate administration, including estate tax audits and litigation and disputes among beneficiaries.
A Strategic Approach to Business Valuation Litigation
Jay McDaniel’s dual expertise as an attorney and valuation analyst ensures a meticulous and strategic approach to every case. Matters typically involve fair value/appraisal proceedings, disputes over personal vs. enterprise goodwill, applicability of marketability and control discounts, key-person adjustments to valuation models, and reasonable-compensation adjustments that alter cash-flow models. He delivers exceptional value to clients by:
Selecting and Vetting Valuation Experts
A strong valuation case begins with the right expert. In addition to contacts developed over his years of practice, as a member of the National Association of Certified Valuators and Analysts and the Exit Planning Institute, Jay’s professional network contains a wide array of experts and resources not readily available to most lawyers.
Jay works to identify qualified valuation professionals, forensic experts on such issues as accounting and damages models, and professionals in related industries, such as merger and acquisition specialists, who meet the needs of the matter and will withstand scrutiny in litigation.
Reviewing and Analyzing Expert Reports
Expert valuation reports are often at the center of valuation disputes. Jay reviews these reports for accuracy, methodology, and compliance with accepted standards. He works with existing lawyers and testifying experts to formulate a strategy to best advocate for the client’s interests.
By identifying errors or inconsistencies, he strengthens his clients’ positions and challenges inflated or improper valuations. As a litigator with 30 years of experience and numerous valuation-driven disputes under his belt, Jay goes on to formulate the most effective strategy for presenting the issues in the light most favorable to the client.
Adversary expert reports may be based on the governing standards of different certifying organizations, including the American Institute of Certified Accountants, the National Association of Certified Valuators and Analysts, and the American Society of Appraisers. Understanding the nuances and applicability of the standards applied by an adversary’s valuation expert is a critical aspect of effective advocacy.
Preparing for Depositions
Depositions are a critical step in valuation litigation. Jay assists clients and their counsel in preparing effective deposition questions to challenge opposing experts.
He also conducts depositions as co-counsel, eliciting admissions and clarifications that can shape the outcome of the case.
Building and Delivering Courtroom Testimony
Whether developing testimony for his client’s expert or conducting cross-examinations, Jay ensures valuation arguments are clear, compelling, and grounded in sound principles.
His ability to translate complex financial concepts into persuasive legal arguments gives his clients an advantage in court.
Results in Valuation Disputes
Jay McDaniel has achieved significant outcomes for his clients in high-stakes valuation litigation.
Some of the cases he has worked on in which advocacy over valuation issues assisted in developing a favorable outcome were the following:
- Correcting a Fundamental Valuation Error for a Minority Owner: In a referral case, Jay identified a fundamental flaw in the valuation report used to calculate the redemption price for a minority interest. By forcing the preparation of a corrected report, Jay secured a much higher payment for the minority owner in the mandatory buyout.
- Challenging Overstated Compensation in a Business Dispute: During mediation involving the purchase of a minority interest in a management company dispute, Jay identified excessive “reasonable compensation” allocated to owners, reclassifying it as profit. This discovery doubled the opposing party’s purchase offer, significantly benefiting his client.
- Excluding Personal Goodwill from Enterprise Value: In a shareholder litigation case, Jay successfully demonstrated that the personal goodwill of the founders was separate from the business assets. This reduced the valuation of the company, resulting in a lower settlement amount paid by his client.
- Adjusting Valuation in Matrimonial Litigation: In a divorce case involving the sale of a business interest, Jay identified necessary reductions in the purchase offer to reflect the future non-compete covenant that would accompany the sale. This adjustment protected his client’s financial interests.
- Applying a Key Man Discount to Reflect Personal Goodwill: In the valuation of a design-build firm, Jay developed a formula that accounted for the personal goodwill of a key rainmaker. This reduced the company’s fair value and resulted in a more equitable outcome for his client.
- Attacking Inflated Projected Cash Flows: Jay represented a client in challenging inflated cash flow projections used to overvalue a business in a construction project dispute. His efforts resulted in a more accurate and defensible valuation.
A Niche Blend of Legal and Financial Expertise
Jay McDaniel’s training and certification as a valuation analyst and the experience of Weiner Law Group’s Business Divorce Group offer clients the benefits of him with education, training and experience that is uncommon among business attorneys.
Jay’s training and crediential, combined with his decades of experience representing closely held businesses, equips him to handle complex valuation issues, to identify errors, and to develop effective litigation strategies.
His clients benefit from his ability to bridge the gap between legal advocacy and financial analysis, ensuring that valuation disputes are resolved on a solid footing.
A Partner for Business Owners and Counsel
Jay McDaniel understands the unique challenges faced by closely held businesses. He works not only with business owners but also with their regular counsel, providing specialized valuation support in litigation.
We partner with primary counsel in areas in which our niche experience and qualifications: we handle expert vetting, report challenges, assist with depositions, and can provide trial support while your team leads case strategy.
By serving as a trusted advisor and collaborator, Jay ensures that every client’s interests are fully protected at every stage of the case.
When to Consult Jay McDaniel for Valuation Issues
Business valuation disputes require a specialist who can navigate legal and financial complexities with precision. Consider consulting Jay McDaniel if you face any of the following scenarios:
- A disagreement over the value of a business interest in a buyout, sale, or merger.
- Disputes involving the classification of personal versus enterprise goodwill.
- Challenges to the accuracy or methodology of an opposing valuation expert’s report.
- Litigation involving shareholder oppression, partnership disputes, or corporate dissolutions.
- Valuation disputes arising from divorce proceedings or estate matters.
- Valuation issues related to the transfer of property as part of a trust or estate.
Why Choose Jay McDaniel and the Weiner Law Group
At the Weiner Law Group, we pride ourselves on delivering exceptional legal representation tailored to the needs of our clients.
Jay McDaniel’s practice reflects the firm’s commitment to excellence, combining legal experience, financial expertise, and a results-oriented approach.
Jay’s ability to simplify complex valuation issues, his rigorous attention to detail, and his track record of success make him a trusted partner in high-stakes disputes.
If you’re facing a valuation issue that requires skilled legal counsel, contact Jay McDaniel at the Weiner Law Group.