Shareholder disputes occur from time to time between owners and can entail unique legal and financial issues to unwind and resolve. Some common disputes we encounter arise from owners distributing amounts inconsistent with operating agreements or employment contracts, improper accounting of personal expenses within the business and conducting business in a manner without fiduciary consideration to their fellow shareholders. We have a wealth of experience in this area and have performed earnings equalization calculations amongst shareholders as well as complete accounting reconstructions.
Operating agreements and employment contracts may specify compensation formulas and allowable fringe benefits however, actual compensation and personal expenses incurred by a business may not conform to these documents or subsequent oral or written agreements. Vallit’s team reviews pertinent documentation to determine the excess benefits the shareholder received and the potential lost profit equalization differential. In the past, we have also conducted accounting reconstructions spanning multiple years to reconcile and correct prior disparities. Ultimately, a business valuation analysis can be performed in this context to assist with settlement negotiations and/or trial if the matter cannot be resolved.
Vallit can assist throughout the entire litigation process from discovery requests prior to filing suit to rendering an opinion and assisting with deposition and trial preparation when parties are unable to resolve their differences. With over 100 years of combined experience handling litigation matters, our team can examine tax returns, financial statements, general ledgers and bank statements to arrive at an economic damage amount in your shareholder dispute which leaves no stone unturned.
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Providing a Clear View of The Financial Picture
Vallit is focused solely on dispute consulting, business valuation and forensic accounting. Our senior team members have testified over 200 times in Federal, State and International courts. Our dispute expertise ranges from family law to complex commercial and intellectual property matters in a wide variety of industries. In non-disputes, our valuation reports are relied on by estate and trust attorneys, auditors, and business decision makers for tax, financial reporting and transaction purposes.