Navigating Partnership Disputes: Lessons from a Valuation Expert

View the complete show notes for this episode. What impact can a partnership dispute have on the value of a company? What is the difference between a legal valuation and a market-based valuation for M&A purposes? Expert appraiser Andy Frew answers these questions and more as he discusses what’s involved and what can go wrong with valuations involving companies that have a partnership dispute arise. He covers the complexities of valuing partnership interests and establishing a thorough valuation methodology to prevent disputes from escalating. What You’ll Learn Standards of Value: An explanation of the three types of standards of value – fair market value, investment value, and fair value – and when each is used.  Triggers: What can cause a partnership split or a dispute and the complexities involved in valuing minority interests in privately held businesses. Experience: The critical role of experience and credentials for appraisers, especially when their work may be challenged in court or by regulatory bodies like the IRS. Differences in Valuations: The distinction between valuations for legal purposes (e.g., partnership disputes, estate taxes) versus market-based valuations for M&A transactions. Want More? Related Resources:  Business Valuation Standards of Value & Fair Market Value Business Valuation Basics: 9 Critical Concepts to Understand Business Valuation Checklist: 4 Questions to Ask First Business Valuation Checklist: 3 Traps to Avoid Books Mentioned: Buy-Sell Agreements for Closely Held and Family Business Owners by Z. Christopher Mercer Quantifying Marketability Discounts by Z. Christopher Mercer Business Valuation: An Integrated Theory (Wiley Series in Finance) by Z. Christopher Mercer and Travis W. Harms Valuing a Business, 6th Edition: The Analysis and Appraisal of Closely Held Companies by Shannon P. Pratt and the ASA Educational Foundation Cost of Capital, + Website: Applications and Examples (Wiley Finance) by Shannon P. Pratt (Author), Roger J. Grabowski (Author), Richard A. Brealey (Foreword) 30-Second Economics by Donald Marron Additional Resources: Planning to sell your business? Schedule a free consultation today. Download a free PDF copy of The Art of The Exit: The Complete Guide to Selling Your Business, Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue, and Food and Beverage M&A: An Insider’s Guide to Selling a Food or Beverage Manufacturing, Distribution, or Grocery Business. Purchase your copy now of A Beginner’s Guide to Business Valuation | The Exit Strategy Handbook | Closing the Deal Listen to Other Episodes M&A Valuations in the Real World with Abhi Mathews The Art and Science of Valuing a Middle-Market Business with Kevin Moyer and Megan Sartor What Does the Future Look Like for Middle Market Valuations? with Bill Wiersema