OCTOBER 2016
In This Issue

 

 
We are grateful to have the opportunity to provide you this valuable information via our monthly e-newsletter and our unparalleled forensic accounting and investigative services.

The goal of this e-newsletter is to provide you critical, inside information that will help you prevail when defending an IRS criminal case. We will do this by sharing the knowledge we have from our 25+ years of experience as an IRS Special Agent.

We take special care to ensure the information we provide you in "The Beacon" is the latest and most current information available.  In this edition, we explain the value of private investigators to attorneys in divorce and business valuations. 

We want to write about topics that will assist you in prevailing with criminal IRS cases. Please e-mail us your topics of interest to Thebeacon@sageinvestigations.com 
 
We encourage you to share our e-newsletter with others in your sphere of influence.
 
Sincerely,
 
Edmond J. Martin
 
Principal, Chief Investigator
Certified Fraud Examiner (CFE)
Texas Certified Investigator (TCI)
The Value of Private Investigators to Attorneys in Divorce and Business Valuations


Attorneys who work with skilled Private Investigators should be interested in business valuation since it can be a critical component in litigation cases involving divorce and any form of litigation where a business is involved.  

 

To value a business in litigation requires special knowledge of the appropriate law and experience, which must be considered.  This applies to marital assets or a disagreement between business owners concerning the business value, a buyout, or unfair treatment of a minority interest holder.  The following are examples of what must be considered:

 

Divorce Litigation:

In a divorce, a business may be the most valuable asset of the marital estate and is generally the most contested.  In Texas for example, the following factors must be considered:

Personal goodwill, which is separate from the goodwill of the business, must be excluded from the community value of the business.

 

The valuator must value the business assuming the owner can freely compete after the sale. 

 

In addition, the valuator must be up-to-date on separate property issues in the event the business may have a separate property element.

 

Business Litigation:

Business litigation where the value of a business is being litigated includes the following:

A shareholder derivative suit may involve a situation where minority shareholders have been treated unfairly.  Most states have statutes that govern items that are not included in this type of valuation. 

 

When interest holders are in a dispute where one interest holder desires to be bought out of the business.  In this case, the value of the business will determine the amount of the buyout. 

 

In a recent case, an interest holder wanted a "buy out" at an exaggerated price.  The investigation of the interest holder revealed he had a long record of doing the same thing with every business in which he invested.  Normally, investigating the background of the party bringing the suit is not part of a business valuation, but it could be a necessary part in representing your client.  Through the information developed by the investigation, the attorney was able to question the opposing individual and his expert in deposition.  An investigator can help if you are curious about what motivates the litigant.

 

Special Skills:

An attorney working with a skilled and knowledgeable private investigator in divorce or business litigation matters should look for a forensic accountant or business valuation expert that possess the following skills:

Investigative skills:  The valuator must have the knowledge of how to conduct an investigation.  Part of that skill is the ability to trace cash, hidden assets, evaluate the conduct of the party filing the law suit, possess the second sense to identify when things do not appear to be right, and possess the ability to conduct an effective interview. 

 

Knowledge of law:  Many valuations conducted with respect to a law suit are governed by state or federal statutes and court cases.  The valuator must be current with those laws...

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About Us

Serving your needs is our priority.

  

At Sage Investigations we are dedicated to serving our clients nationally, to help them navigate the difficulties of dealing with the IRS, and other complex (forensic) financial fraud investigations both civil and criminal. By narrowing our focus to our primary strength of following the money, we steer our knowledge, efforts, and experience to financial issues. We help our clients propel their cases forward by assisting in the review, acquisition, and organization of financial records, evaluating the elements of their cases, and helping create winning strategies. Through the use of our proprietary advanced financial investigative technology we analyze complex financial data quickly, easily and efficiently, saving our client's time and money.

 

Sage handles all cases with altruism, professionalism, honesty, integrity, passion and respect. When you hire Sage, you hire a team of professionals with skill and knowledge that helps you have more effective solutions. We are innovative with our DIO cutting edge technology, and perform every investigation in an orderly and organized manner to develop a clear investigative roadmap and deliver a quality work product. The compass that guides us is strong leadership and accountability. Learn more...

 

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Austin, TX 78716

Phone: 512-659-3179

Fax: 512-328-6878

Email: info@SageInvestigations.com 

www.sageinvestigations.com

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