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

Challenges in Business Valuations in a Divorce with Ron SeigneurIn this episode of Divorce at Altitude, Ryan Kalamaya and Amy Goscha are joined by business valuation expert Ron Seigneur, who discusses the complexities of business valuations in divorce cases, particularly when it involves closely held businesses. Ron provides insights on how to determine the value of a business, the different types of valuation standards, and the legal challenges that often arise in these cases. Whether it's determining fair market value or investment value, Ron explains the nuances that attorneys and clients need to be aware of during the divorce process.Guest InformationRon Seigneur is a founding partner of Seigneur Gustafson, a Colorado-based firm specializing in financial forensics, business and intellectual property valuation, and exit planning services. He has written numerous articles on business valuation and is an adjunct professor at the University of Denver, Daniels College of Business. Ron also serves as the vice-chair of the Business Valuation Committee for the American Society of Appraisers.Episode OutlineIntroduction to the Episode Ryan introduces Ron Seigneur and discusses the significance of business valuations in divorce cases, particularly those involving closely held businesses.Understanding Business Valuations in Divorce Ron breaks down the different types of business valuation metrics used in divorce, including fair market value, fair value, and investment value.The Importance of Standard of Value Ryan and Ron discuss the legal distinction between fair market value and investment value, and how this impacts the valuation of a business in divorce.Discounts in Business Valuations Ron dives into the importance of discounts, such as the minority interest discount and lack of marketability discount, particularly when valuing a minority stake in a closely held business.Goodwill in Professional Businesses The conversation turns to the concept of goodwill in professional businesses.How Volatility Affects Business Valuations Ron addresses how economic volatility, such as market fluctuations or industry disruptions, influences business valuations.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 [email protected].************************************************************************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.