Last week at the AICPA National BV conference, Kalman Barson (Barson Group) advised the audience to consider “concepts that go far beyond pushing a pencil or keying in data” in divorce cases.  He suggested practitioners consider the following questions when determining a value:

• How do improper actions impact value?  What if those improper actions are common within that specific business or industry?
• Should the existence of unreported income create a difference in value?  
• Is there logic that a PTE is inherently worth more than a C corp?
• The public markets dropped 40% in 2008 –were private companies impacted similarly?
• Are either age or heath relevant to value? To what extent does relative power structure of the company and personal contribution make a difference in the value of the interest?

Look for Barson’s insight to these questions in an upcoming issue of Business Valuation Update.