Vident Partners provides vetted business valuation expert witnesses for cases involving shareholder disputes, marital dissolution, mergers and acquisitions litigation, and fair market value determination of closely held businesses. Request a referral today.
Find a Business Valuation Expert →Overview
Business valuation experts determine the fair market value of businesses, closely held interests, and intangible assets in disputes where value is genuinely contested. The controlling standard — fair market value, defined as the price a willing buyer would pay a willing seller, neither under compulsion and both with reasonable knowledge of relevant facts — is codified in IRS Revenue Ruling 59-60, the authoritative federal benchmark for closely held business valuations in tax, estate, and commercial litigation 1. Experts apply three recognized approaches: income (discounted cash flow or capitalized earnings), market (comparable transactions or guideline companies), and asset (net asset value). Recognized credentials include the Certified Valuation Analyst (CVA) from NACVA — the only valuation credential accredited by both the NCCA and the ANSI National Accreditation Board — and the Accredited in Business Valuation (ABV) from the AICPA 2. Under Daubert, experts must defend methodology selection, discount rates, and any discounts for lack of marketability or control.
IRS Revenue Ruling 59-60 defines fair market value as the price a willing buyer would pay a willing seller, neither under compulsion, both having reasonable knowledge of relevant facts — the foundational standard for closely held business valuations in litigation.
Case Types
Marital dissolution involving closely held business interests
Shareholder oppression and buyout disputes
Estate and gift tax valuation controversies
Mergers and acquisitions purchase price disputes
Partner and member dissociation valuation
Qualifications
Related Specialties
FAQ
A business valuation expert should hold a recognized credential such as ASA, ABV, CVA, or CFA, have a CPA license, and demonstrate extensive experience valuing businesses similar to the one at issue. Familiarity with the applicable valuation standard, whether fair market value, fair value, or investment value, is critical.
Business valuation experts are needed in divorce cases involving business ownership, shareholder disputes, estate and gift tax controversies, partnership dissolution, damage calculations in commercial litigation, and any case requiring determination of the value of a business or business interest.
In general, financial expert fees are determined by the expert themselves, based on a variety of criteria. Among those criteria are professional experience, forensic experience, professional certifications, industry specialization, and publications. Vident does have some influence over expert fees by comparing experts within a specialty, but ultimately it is a personal decision by the expert.
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Vident Partners connects attorneys with qualified business valuation expert witnesses. Complimentary consultation, 24-hour turnaround, no obligation.
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