Situation
The owner of a $3.7 million technology company was going through divorce proceedings. As an expert with decades of experience in business valuations, Merrimack Business Appraisers President Lou Pereira was retained as the certified business appraiser to determine the fair value to the holder of the business and related marital assets.
Merrimack Business Appraisers’ Approach
Pereira’s business valuation report documented that the owner had started the business before the marriage, and substantiated that the value of the business had increased only marginally during the time of the marriage. The assignment included two valuations: business valuation at the start of the marriage and company valuation at the end of the marriage. The two values allowed the family court to identify the change in value of the business during the time of the marriage, which was the business value attributable as a marital asset.
Valuation Outcome
The result of the business valuation report was that both parties received an accurate allocation as part of the divorce settlement.
