When business partners or shareholders don’t see eye to eye, sometimes disputes can arise. In some situations, a shareholder may wish to leave the partnership, and legal representation may be brought in. In these circumstances, an accountant is often either appointed by the courts or sought out by a shareholder to provide analysis and reports, manage assets, and assess the merits of any financial claims.
How Accountants Help During A Shareholder Dispute
During a shareholder dispute, accountants can act as either a receiver or inspector. As a receiver, we are put in charge of protecting stakeholders’ interests by taking possession of the assets in a dispute. Receivers may also:
- Conduct an auction between disputing shareholders, with the goal of one shareholder buying out the other
- Sell or liquidate the business and divide the proceeds to the respective stakeholders
As an inspector, our job is to gather information and report on the facts we discover. This can include:
- Examining financial records
- Gathering information from officers and employees about the company’s affairs
- Completing a business valuation
Why A Business Valuation is Needed in A Shareholder Dispute
The purpose of a valuation during a shareholder dispute is to determine how much the shares are worth so that a sale can be facilitated. Creating this report is a complex process that requires a comprehensive understanding of a host of valuation principles and application.
Organize Your Team with Liu & Associates
Liu & Associates can quickly put together a team of experts that will look at tax, business valuation, forensic accounting, and more to help you with your shareholder dispute. Our staff has a comprehensive understanding and investigative abilities to help you in your time of need.
Contact or visit us today to speak to one of our experts or schedule an appointment.