Litigation + Valuation

When you’re facing complex litigation + valuation issues, you want professionals who can deliver accurate results. Maybe you need an expert witness to testify. Or you need to know what your business is worth for a legal matter. Whatever your needs, we offer a range of specialized services.

Professionals

You will have access to professionals who are highly trained, nationally accredited and have a diverse background of experience. They hold more than a dozen certifications, receive hundreds of hours of relevant training every year and have more than 175 combined years’ experience.

Meet the Team

History

Henry+Horne started its business valuation practice in 1991 with just two employees. Today, the practice has grown to include economic damages + litigation support, fraud + forensic services and valuation services that help clients just like you. The Firm has ranked as one of the Top Phoenix Litigation Support Firms by the Phoenix Business Journal for three years in a row and broke into the Top 10 in 2016.

Questions? Our litigation + valuation professionals help clients in a variety of industries including construction, dealerships, restaurants, technology and more.

Employee Stock Ownership Plans (ESOP) Valuations

Employee Stock Ownership Plans (ESOPs) offer a powerful tool that allows you to sell all or part of your business to employees. Because ESOPs face intense scrutiny from both the IRS and the Department of Labor, you need professionals who have both the expertise and independence for this specialized area of business valuation.

Our Firm has a proven track record with many years of experience in the formation and annual valuation of ESOPs. We can help you decide if developing an ESOP is the right move for your business, assist in creating one and provide quarterly, semi-annual or annual valuation updates to determine the fair market value of the equity interest in the company owned by the ESOP.

Your valuation will meet all federal standards for independence and documentation, and your team will meet the Uniform Standards of Professional Appraisal Practice.

Why form an ESOP?

ESOP Participants frequently asked questions

ESOP case update

ASA supports trustee, appraiser in ESOP litigation

Estate + Gift Valuations

If you have membership, partnership or shareholder interests in a limited partnership, limited liability company or corporation, knowing the value of your ownership is necessary for gift, estate tax and other fiduciary reporting purposes. You need advisers who have extensive knowledge and understanding of court cases, state statutes and IRS codes, rulings, technical advice memorandums and regulations that govern your entity and influence valuation methodology.

In the last 30 years, our professionals have valued thousands of ownership interests in partnerships, limited liability companies and corporations. They work closely with prominent estate planners, trust officers, accountants and financial planners throughout the Southwest and United States. Our experts are also frequently asked to make presentations to professionals, estate planning councils, law firms and trust departments.

Your appraisal will contain a supportable value conclusion that is concise and complies with all relevant standards and regulations. While the IRS sometimes audits federal gift tax and estate tax returns and challenges the value conclusion and discounts, our experts’ appraisals have consistently held up under the scrutiny of the IRS.

Discount for lack of control and majority interests

Undivided interests in real property

If you own undivided interests in real estate, knowing the value is important. Maybe you need an appraisal for estate + gift tax purposes, or to determine the market value when converting a traditional IRA to a Roth IRA.

Our professionals have in-depth knowledge of undivided interests and can provide the necessary factual and logical information to support their value conclusions and discounts. Your valuation will include a detailed analysis identifying factors that influence the control and marketability discounts applied to your undivided interests.

Our valuation experts appraise all types of properties including:

• Improved and unimproved properties zoned for commercial use
• Single family residences in which undivided interests are owned by co-tenants
• Residences where an estate holds a 50% community property interest in the home
• A settler making a gift to a qualified personal residence trust (QPRT)

Estate & Gift Tax Valuations: Can the IRS Disregard an Agreed Upon Value for Shares in a Buy-Sell Agreement?

In Federal Tax Court Your Report Is Your Testimony

Governing agreements and holding company valuation

Valuation case update: Estate of Streightoff vs Commissioner

 Divorce Valuation + Forensics

Whether you suspect your spouse is hiding income or you need an expert to testify at your divorce deposition, our professionals have extensive experience in business valuation, sole and separate property, Ruschenberg and Cockrill analyses and other financial and tax aspects of family law.

Our specific divorce division of assets and marital dissolution key practice areas include:

• Business valuation – Value a closely held business or a professional practice owned by one or more divorcing parties
• Discovery – Help counsel select the appropriate financial, tax and related documents to request in the discovery phase of a case
• Forensic accounting – Provide forensic accounting services in situations where unreported income and/or undisclosed assets are suspected. Examples of Forensic Accounting for Divorce include:
  • Asset Tracing – using source documents such as bank statements and investment account statements to follow the use of funds to its final destination (i.e. other asset such as real estate or wasting of community funds such as spending on extramarital affairs).
  • Sole and separate property analysis – the tracing of assets from its separate property beginnings through any number of mutations to demonstrate whether the asset has maintained its separate property characterization as of the date of divorce.
• Income determination – Determine a spouse’s income for alimony or child support, often a difficult undertaking when a closely held business and/or investment interests are involved

Our experts have testified hundreds of times in divorce depositions, court hearings, court trials and arbitrations. They frequently serve as the court’s appointed expert and have helped resolve mediation cases and settlement conferences.

Prenuptial agreements and the forensic accountant

Tax reform and the impact on divorce

I’m divorced, now what?

Determining income in divorce proceedings

Mediation and the CPA expert

Divorce in business valuations

Business Divorce

Sometimes, business relationships do not work out and it is necessary to modify the ownership structure of the company.  When this is the case, you will need an experienced appraiser to determine the value of the equity interest at stake. Henry+Horne has the experience and qualifications to assist in determining value.

Examples of Business Divorce key practice areas include:

• Employee disputes with their employer– many times we are asked to interpret the financial impact of contract language that involves an employee and employer.
• Shareholder disputes – when a shareholder wants to be removed from the ownership of a company, we provide the financial expertise to compute the fair market value of the leaving shareholder’s equity value.
• Business-to-business disputes – In some cases, there are disputes between two companies over contract language. We interpret the financial impact of the contract language.

We are skilled in the process of litigation support and the complex financial issues that arise during shareholder or member disputes, providing answers and expert witness testimony when needed.

When ownership disputes leads to business valuations

Buy-Sell agreement horror stories

Trust + Probate Forensics

A fiduciary is tasked with acting in the best interest of the parties they represent. Sometimes that doesn’t happen. Our professionals are trained and experienced in independently analyzing complex financial issues that arise during trust + probate disputes. We provide understandable answers and expert witness testimony when required.

Should a beneficiary blindly trust the trustee?

Accounting for financial transactions while in a fiduciary capacity or care giving role

Fiduciary Fraud and Abuse

Transaction Advisory

Making a change in your business is a big deal. If you’re thinking about selling your company, transferring ownership to your kids or making succession plans we can help. Henry+Horne is a full-service accounting firm that offers valuation, tax, financial and advisory services to business owners just like you who are considering:

• Mergers, sales or acquisitions
• Exit or succession plans that include a transfer or sale of equity in their companies

Our experts can provide you with strategic advice and options throughout the transition process to:

• Maximize the value of your business
• Find an appropriate buyer
• Structure the transaction to minimize taxes
• Maximize economic benefits

Whether you are on the buy-side or sell-side of a potential merger + acquisition (M&A) transaction, you want professionals with extensive experience and a solid understanding of all the moving parts in the transaction. As the buyer of a business, we can help increase the transparency of the company’s financial information. As the seller, we can help increase the likelihood of a successful transaction.

Buy-Side Advisory Services

Our professionals work with you to understand the potential risks that would cause an unsuccessful outcome. Our goal is to provide useful information that will help you maximize a return on investment. Possible areas of concern could be:

• IT environment
• Operational risks
• Quality of revenue + working capital
• Quality of customers
• Quality of earnings

Sell-Side Advisory Services

Our goal is to maximize the sales price by addressing company-specific challenges before the business is listed. We’ll perform an appraisal of the company and assess key performance indicators that can be addressed to optimize the earnings potential.

We also perform a sell-side financial due diligence report to mitigate the likelihood of a post-LOI haircut to the purchase price. Our report gives you feedback from a market perspective so you can adjust operations or perform accounting corrections so financial statements provide an accurate picture of the company’s economics.

Sell-side due diligence: Cheerleader or value service?

Your banker says you need a QoE, now what?

Incremental value process in mergers and acquisitions

Top 5 red flags of earnings management

Economic Damages

When it comes to complex economic damages and litigation support issues, you want experience and direct access to your financial expert when you need it.

You can expect our highly trained, nationally accredited professionals to perform sophisticated financial analyses. We stay current on the latest state and federal court cases and work with attorneys to meet tight deadlines. We control costs by using the latest process and technology to perform complex projects efficiently, and we communicate our findings in a clear and concise manner.

Estimating future earnings of a child or minor

Forensic Accounting or forensic economics?

New business: reasonable certainty test for lost profits

What does Forensic accounting mean anyway?

Expert Testimony

When it comes to litigation matters, you need an expert witness who can clearly communicate case facts through written reports and oral testimonies. Our professionals have a proven track record as expert witnesses and have provided expert testimony at depositions, arbitrations and trials for issues including:

• Asset tracing
• Business valuations
• Child support
• Fraud investigations
• Lost profit analyses
• Marital dissolution
• Partnership disputes
• Professional standards
• Spousal maintenance

Our professionals can be utilized in whichever stage of litigation you’re in – case assessments, discovery assistance, case analysis and testimony at trial. Your expert witness will review records and underlying supporting documentation relevant to your case to arrive at appropriate conclusions, as well as document methodology and ensure that chain-of-custody procedures are established for all forms of evidence.

Our professionals have been admitted as experts in state and federal courts, and have provided expert testimony in many areas including:

• Analysis/rebuttal of opposing expert
• Arbitration
• Business interruption claims
• Contract disputes
• Damages in commercial litigation
• Employment and lost earnings analysis
• Fraudulent conveyance analysis
• Lost profits analysis
• Lost profits and economic damages
• Personal injury claims
• Wrongful death
• Wrongful termination

Here’s how to fail when testifying as an expert

Testifying experts: is technical knowledge enough

Should a CPA testifying expert be a client advocate

Trends in Daubert

Other Financial Consulting Services

Whether you suspect fraud in your business, need a financial issue investigated or are involved in a legal matter, our forensic accounting experts can help you with a wide range of issues including:

• Accounting reconciliations
• Employment agreements
• Fraud examination
• Payroll disputes
• Business valuation consulting
• Buy/sell agreements
• C to S corporation conversions
• Cash flow analysis
• Charitable contributions
• Financial reporting
• Industry review and benchmarking
• Intangible assets
• Intangible asset valuation services
• Intangible asset consulting services
• Intellectual property
• SBA loans
• Stock options and deferred compensation arrangements (Section 409A)
• Valuation in bankruptcy
• Profit improvement

Protect your business: collusion and increased fraud losses

What is money laundering?

Phone scams remain on IRS’s Dirty Dozen List

The Fraud Triangle

Small business fraud

Our professional experts hold a number of certifications including the certified fraud examiner and certified in financial forensics designations. They identify key issues, possess a certain investigative intuitiveness when it comes to handling your needs and simplify their findings so they’re easy to understand.

Questions about forensic accounting and fraud examination? Fill out the form to the left to contact Melissa Loughlin-Sines or Mike Metzler.