Boards of directors and shareholders often require valuation services for matters such as share repurchases, dividend recapitalizations, or other changes in ownership interests. These types of transactions can be friendly or adversarial. We serve as independent valuation experts in connection with shareholder transactions and liquidity events.
When shareholder valuation matters become adversarial, we are often engaged to provide narrative reports and expert testimony in a variety of venues including the Delaware Court of Chancery, U.S. District Courts, state courts, and arbitrations. These disputes typically involve closely held companies addressing the following types of issues.
Shareholder oppression occurs when majority shareholders take corporate actions that unfairly impact the minority shareholders. These situations may involve either closely-held or publicly-traded companies. Plaintiffs and defendants retain us to provide narrative reports and expert testimony regarding shareholder value and alleged economic damages in these types of matters.
Disputes may arise regarding the valuation and transaction provisions of buy/sell agreements. Often, poorly drafted language can lead to disputes over the value or transfer of ownership interests. We routinely conduct valuations of closely-held securities for buy/sell agreements. Also, we often serve as a “third appraiser” in situations when an independent and highly-qualified expert is needed to resolve a dispute between two adversarial valuation experts.