2004 California Business Trial Lawyer Survey |
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By: ValueNomics Research, Inc.
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Introduction |
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ValueNomics recently performed a research study of business trial lawyer's opinions on a variety of valuation issues.
The purpose of the research was to gather information to assist trial lawyers and valuation professionals with how certain issues are perceived in the market.
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Method |
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ValueNomics mailed the attached survey to about 2,000 randomly selected business trial lawyers out of a population of 8,000. The overall response rate was an impressive 1.5%.
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Findings |
- 93% responding have been engaged in a case where valuation was an issue
- The split between plaintiff and defendant as their clients was about equal
- Most important qualities of an expert were experience (1st) and track record (2nd)
- The survey found that 36% of respondents prefer a local independent valuation firm when selecting their expert
- Valuation firms were the 1st choice, while national accounting firms were the choice of only 3% of the respondents
- Almost 40% of the respondents said selection of a valuation expert depends on the specifics of the case
- Space was left for write in responses indicating the criteria for decision of valuation expert selection. Popular responses included:
- The type of case
- The industry, as well as
- The individual firm's experience with the subject.
- Past experience with the expert, and referral from a peer ranked respectively as the 1st and 2nd most important principles for selecting a firm. Fees ranked least important.
- The expert's independence and objectivity are the two least important factors to respondent attorneys selecting an expert
- 39% responding have experience with minority shareholder valuation
- 29% believe their expert met their expectations
- 1 in 5 have experience with an expert that received zero weight for their valuation opinion
- 48% believe that the Sarbanes-Oxley conflict rules apply as a higher standard of care for privately owned companies
- 53% believe that there can only be one conflict definition for CPAs performing attestation engagements, including attestation work for private companies.
60% believe that accounting firms should not perform valuation services for their clients for whom they perform "any" kind of attestation functions. Attestation engagements include audit, review and compilation services
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