Forensic accountants play a vital role in litigation, both as advisers to the parties to a dispute & as experts. George Sim shares his experience from the coalface
- It may be important for solicitors to consult forensic accountants for their expertise in valuation methods and their experience of the litigation process.
- Valuations may be needed in many different types of litigation ranging from commercial disputes to divorce cases.
Business valuations may be undertaken with a view to a sale of a business or for tax purposes, but they will often need to be carried out where litigation is in prospect.
Valuation can be complex: issues may arise concerning the quantity and/or quality of information available about the business and from the fact that the owner’s business and personal affairs may be closely intertwined. Moreover, interests in unincorporated businesses and shares in private companies are not readily marketable and there may have been no similar transactions in the past to provide a basis for comparison.
Solicitors requiring a business valuation to be carried out will find it advantageous to instruct forensic accountants at an early
