At BVR’s National Divorce Conference last week, several valuation experts quantified the impact of multiple judgements that have the consistent effect of either reducing or increasing the value of a subject company. If all of an expert’s judgements tilt the value in the same direction, “the judges in family law cases are likely to express concern,” said Ron Seigneur.

He listed examples of compounded judgements that can combine to provide the appearance of bias, including:

• Director’s compensation;
• Capitalization of cash flows;
• Discounted rates;
• Company-specific risk;
• Market data multiples; and
• Discounts for marketability or liquidity.