Shareholder Disputes

Valuation of business interests is critical in resolving shareholder disputes, which can involve allegations of mismanagement or excessive compensation. These disputes can also be prompted by diversion of funds; often, they are perquisites for management and accounting irregularities.

Cendrowski Corporate Advisors assists business owners, shareholders, and the courts to resolve shareholder disputes among privately-held entities. Our seasoned advisors have provided consulting for shareholder lawsuits in diverse industries, from start-ups to established corporations. Our valuation specialists also provide expert testimony on cases related to shareholder disputes.

Our tax and valuation professionals can also help your company determine the fair market value of common stock, which is particularly valuable during shareholder disputes. Ensuring that a 409A valuation is compliant with all IRS regulations helps fend off IRS penalties. We also make certain that business owners can meet the requirements for audit practices and tax compliance from the issue of common stock.

CCA_CaseStudy_03
Client Success: 409A Stock Forecast

Cendrowski Corporate Advisors was engaged by a healthcare consulting company to provide a valuation for stock-based compensation. Since the company was relatively young, historical financials were limited. The company was significantly ramping up revenue, so much of the valuation had to be determined by forecasts. We also had to assess the market they were targeting and determine how much market share they could reasonably be expected to capture.

The companies’ management provided forecasts based on their previous year’s actual sales. We were able to extrapolate a value based on these cash flows discounted back to present value based on the associated risks of being a start-up. The company’s business model reflected strong margins and minimal capital expenditures. As a consulting firm, most of their expenses came from salaries and wages, and capital expenditures were practically non-existent with few fixed assets. The company’s most significant assets were their employees.

The Cendrowski Corporate Advisors team analyzed how cash flowed through the business based on those circumstances, which altered the value of the practice. We provided the client with a formal report for use related to stock-based compensation, which was used to issue stock to their firm’s current and future employees.

UPREITs: Unique Real Estate Investment Structures title on tax documents

UPREITs: Unique Real Estate Investment Structures

Real estate investors always seek opportunities to build, diversify, and maximize their property portfolios. One increasingly popular but complex structure – the UPREIT or umbrella partnership real estate investment trust – offers unique tax incentives for contributing property in exchange for ownership shares. But UPREITs require navigating intricate partnership agreements and tax considerations. This guide […]

Read More
woman calculating her business's value on her couch

Key Components of Business Valuation: Exploring the Methods and Approaches

Business valuation is crucial for establishing deal terms and pricing during mergers, acquisitions, or capital-raising activities. An objective company valuation provides the foundation for negotiations. When selling a business, owners want to maximize the sale price while minimizing tax implications. For potential buyers, smart deal pricing is essential. Accurately valuing a company is essential for […]

Read More
accounting papers that show business valuation

How To Calculate Business Valuation

Knowing your company’s worth provides critical insight for making strategic decisions and charting the optimal path forward. However, accurately valuing a business requires in-depth financial analysis using proven approaches. While quick online calculators can generate ballpark figures, serious leaders turn to the main valuation methodologies accepted by the finance community. Mastering these techniques helps set […]

Read More

Let's Collaborate

Opportunities don’t happen, you create them. The same is true for well-informed business decisions.

How can we collaborate with you and your team?

Cendrowski Corporate Advisors needs the information you provide to us to contact you about our services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.

* indicates required fields

Scroll to Top