Disputes happen among the best of friends and among business partners, no matter how long they have been such. When a dispute of this kind occurs, litigation is almost inevitable. Sometimes this stems from a majority shareholder making decisions that were detrimental to the minority shareholders– essentially to oppress them. Whatever the reasons for the dispute and subsequent litigation, a court frequently resolves the case by having the dissenting shareholder bought out at fair value. This results in the disputing shareholders essentially going their separate ways with their fair share of equity.

When this happens, it is important to realize that the fair value most state courts refer to is not the same as the well known fair market value. Fair market value is determined by the market. Therefore, it considers the factors that buyers and sellers do in the marketplace, such as degree of control, marketability and other possible risks to reflect current market conditions. Fair value does not take into account all of the same variables and discounts that fair market value does. Fair value denotes a statutory standard of value meant to provide an equitable value for buyout purposes. This statutory standard varies by state.

LVS' valuations for shareholder dispute purposes provide reliable fair value opinions. During the valuation process we listen to each party’s concerns, take a thorough look at the business and provide an independent, unbiased analysis determining fair value based on the state’s statutes and case law. We provide shareholder dispute valuations to our clients and are available, if called upon, to provide expert testimony regarding our valuation.

If you need an ethical, unbiased valuation to determine the proper buyout price and resolve your situation, call us now for a no obligation consultation or submit an inquiry in the contact section of our website.