7/27/2019 Help! When to Call an Appraiser

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Viewpoint on Value Newsletter

Help! When to call an Appraiser

Edited by, Ciro Cuono, Partner, CPA/ABV/CFF, CVA, CGMAOften attorneys wonder when to contact an expert witness during the litigation process: when a

lawsuit is filed, after discovery or once the trial date is set? Many hope to achieve an amicable

out-of-court settlement without calling in outside expertise. But delaying an appraisal may come

at a price.

Most valuators agree that its never too early to contact them if theres a chance litigants will

disagree about the value of a business interest. This doesnt mean paying the full appraisal fee

up front, but it might require paying a refundable retainer. The initial phases of consulting with

an expert can be fairly inexpensive and serve several important purposes.

First, consulting an expert tells the opposing side that youre taking the case seriously and are

prepared to battle, if necessary. Your perceived preparedness creates an incentive for the

opposition to settle. In addition, by engaging an expert early youll obtain essential information

during the discovery phase, including an assessment of how much is at stake and whether it

makes sense to pursue litigation.

Your appraiser also can provide a list of documents and procedures to request from the court.

Access to the companys books and records, facilities, and management is essential to accurately

valuing a business.

Perhaps the most egregious mistake is waiting until the last minute to contact an appraiser. Not

only may the quality of a written report be compromised if you wait until just a week or two

before trial, but the appraiser might calculate an unexpectedly high or low value, causing you to

rethink your strategy at the last minute.

Valuation isnt an overnight process. An appraiser needs adequate time to define the

assignment, gather facts and analyze the data. Judges frown on hasty valuation decisions.

For more information, contact Ciro Cuono atccuono@odpkf.com.

About Our Practice:

O'Connor Davies, LLP is a full service Certified Public Accounting and consulting firm that has a long

history of serving clients both domestically and internationally and providing specialized professional

services of the highest quality. With roots tracing to 1891, seven offices located in New York, New

Jersey and Connecticut, and approximately 400 professionals including 70 partners, the Firm provides

a complete range of accounting, auditing, tax and management advisory services. OConnor Davies is

ranked as number 36 in Accounting Today's 2013 "Top 100 Firms" in the United States. The Firm isalso within the 20 largest accounting firms in the New York Metropolitan area according to Crain's

New York Business and the Westchester and Fairfield County Business Journals.

OConnor Davies, LLP is a member firm of the PKF International Limited network of legally

independent firms and does not accept any responsibility or liability for the actions or inactions on

the part of any other individual member firm or firms.

IRS CIRCULAR 230 DISCLOSURE: To comply with IRS regulations, we are required to inform you that

unless expressly stated otherwise, any discussion of U.S. federal tax issues in this correspondence

(including any attachments) is not intended or written to be used, and cannot be used, (i) to avoid any

penalties imposed under the Internal Revenue Code, or (ii) to promote, market, or recommend to

another party any transaction or matter addressed herein.

Ciro Cuono

CPA/ABV/CFF

CVA,CGMA

Partner

ccuono@odpkf.com

914.381.8900