Challenges in Business Valuations in a Divorce with Ron Seigneur | Episode 138

The pandemic has caused us to make many changes to the way we do things, and business valuations are no exception. Joining us today to discuss valuations, volatility, and so much more is business valuation expert, Ron Seigneur from Seigneur Gustafson LLP. 

In this episode, you’ll hear the three imperative questions that need to be asked when it comes to valuations, the difference between fair market value and investment value, why judges like to have the option to choose between the two, and the difference between enterprise good wealth and personal good wealth. We also delve into the Thornhill case before Ron explains how he handles disagreements in valuations, how today’s climate has changed valuation, and why forward-looking models are the way to go. 

Key Points From This Episode:

• The three fundamental questions that need to be asked when looking at a valuation.  
• Ron breaks down the differences between fair market value and investment value. 
• Why one might argue for fair market value in business when going through a divorce. 
• The importance of distinguishing between enterprise good wealth and personal good wealth.
• How the Thornhill case changed things for Ron and his company. 
• Why he wants judges to be able to choose between fair market and investment value.
• What family lawyers can do to reduce disagreements around valuations between parties. 
• He tells us what circumstances cause a judge to use investment value and fair market value. 
• Ron explains what goes into minority discounts based on certain scenarios. 
• What the difference in compensation does to the value of businesses. 
• How Ron addresses the challenges and volatility within valuation.
• Why forward-looking valuation models lead to better results. 
• What people can do to mitigate their risk and how Ron and his company can assist. 
• Ron tells us about his new book Financial Expert Guide for Family Law Judges and Attorneys and why it is helpful for learning about valuation. 

What is Divorce at Altitude?

Ryan Kalamaya and Amy Goscha provide tips and recommendations on issues related to divorce, separation, and co-parenting in Colorado. Ryan and Amy are the founding partners of an innovative and ambitious law firm, Kalamaya | Goscha, that pushes the boundaries to discover new frontiers in family law, personal injuries, and criminal defense in Colorado.

To subscribe to Divorce at Altitude, click here and select your favorite podcast player. To subscribe to Kalamaya | Goscha’s YouTube channel where many of the episodes will be posted as videos, click here. If you have additional questions or would like to speak to one of our attorneys, give us a call at 970-429-5784 or email us at info@kalamaya.law.

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DISCLAIMER: THE COMMENTARY AND OPINIONS ON THIS PODCAST IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE. CONTACT AN ATTORNEY IN YOUR STATE OR AREA TO OBTAIN LEGAL ADVICE ON ANY OF THESE ISSUES.