Most business valuation disputes are settled before proceeding to the courtroom, and only go to trial if there is a significant disagreement between the values presented by the opposing experts. We draw on our valuation experience and competence in making sure that each of our reports is prepared and researched thoroughly enough to reduce the chance that the dispute will proceed to trial. However, if a trial or deposition is required, we have multiple professional valuation credentials, including the well-recognized Appraisal Review and Management – Business Valuation (ARM-BV) credential which requires the candidate to complete and pass and exam from two 3 ½-day classes and submit an appraisal review of an actual appraisal report to demonstrate to the Board of Examiners a clear and logical adherence to all applicable standards and that all statements and conclusions that contribute to the value conclusion is supported by facts shown in the report and explained in detail.
In a review of an appraiser’s work product, we conform with the Uniform Standards of Professional Appraisal Practice (USPAP) “Standard 3: Appraisal Review, Development” which states that (initial paragraph), “in developing an appraisal review, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal review.”
In addition, we also conform with USPAP “Standard 4: Appraisal Review, Reporting which states that (initial paragraph) “in reporting the results of an appraisal review, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading.”
In Michael’s experience, no report is completely flawless and emphasizes to other appraisers the importance of assuming that every report will be disputed and could eventually go to trial. This level of thinking and related preparation reduces that likelihood that reports that are prepared will have flaws that can be challenged by opposing counsel or their expert witness.
He has had training through the American Institute of CPA’s Expert Witness Workshop, which prepared expert witnesses on key aspects of an expert report with a special focus on compliance with the Federal Rules of Evidence and Federal Rules of Civil Procedure. In addition, mock trial and deposition provided authentic experience of preparing for deposition and trial with actual attorneys and judges.
For illustrative purposes, a link to a report of an example expert appraisal review of a business valuation is attached.