Litigation Support Services Vancouver

Since 2003 Rick Mertens has assisted many lawyers and their clients with litigation support services for a variety of purposes, including:

• Business valuations (en bloc fair market value of shares and fair market value of specific share interests)
• Minority discount analysis
• Matrimonial disputes/divorce
• Determination of income for spousal and child support (often referred to as guideline income calculations and guideline income reports)
• The quantification of business losses and other economic damages
• Preparation of expert reports
• Preparation of reports for settlement negotiations
• Review and critique of reports prepared by other valuation experts
• Assistance in mediations
• Providing expert testimony at trial

Depending on the situation a formal expert report is not always required. Rick works with counsel upfront to determine the most efficient manner (in terms of time and of course cost) to assist them with a given engagement. When formal reports are required, Rick’s valuation and other expert reports are prepared and issued in accordance with the practice standards of the CBV Institute (and compliance with the applicable court rules for expert reports).
 
Many valuation assignments for matrimonial disputes also involve determining income available for spousal and child support. This can be an extension of the earnings analysis (i.e. normalization of earnings) work to be done on the corporate share valuation. There are a number of reasons as to why a shareholder’s reported income in his or her T1 Personal Income Tax and Benefit Return may not be equal to the potential earnings available to them for a given year from a company in their capacity as a shareholder/manager. In some instances excess after-tax earnings are retained in the company. Shareholders often receive significant personal benefits from the business. Funds can be taken out of the company in the form of shareholder loans for a period of time (i.e. building up a shareholder loan debit balance to be cleared out in a later year via dividends, which are akin to pre-paid dividends yet to be reported for personal income taxes). Rick can help counsel identify the necessary information, perform an appropriate income analysis and present the findings in a clear and concise manner.
 
When calculating the fair market value of a non-controlling share interest it is often required to determine whether a minority interest discount is applicable, and if so, select an appropriate level of discount to apply. Of course each situation will differ and depending on the facts, the following information and factors should be considered:

• The size of the subject shareholding
• The relative size of the subject shareholding to other shareholdings of the company
• Whether there is a single controlling shareholder
• The rights and restrictions of each class of issued and outstanding shares in the company
• The relationship of the company’s shareholders
• The existence of a shareholders’ agreement and its provisions
• Provisions of the applicable corporate jurisdiction
• The articles of incorporation
• The shareholders’ roles in the business
• The company’s dividend paying history
• The nature of the underlying assets (i.e. active business or passive investments)
• The likelihood of an en bloc sale or liquidation of the company in the near future
• Other relevant factors

Contact Rick to discuss how he can best assist you and your client.

Contact Rick For Independent Valuation Advice 
604-345-4103