CPA and Forensic Accounting Litigation Support Services
Insight Forensic & Valuation Services provides litigation support and expert services involving business valuation, forensic accounting, economic damages, and other complex financial matters.
We assist counsel at various stages of a dispute, from evaluating financial issues and information during discovery through the development and communication of expert opinions.
Consulting and Testifying Expert Services
We serve in both consulting and testifying roles. The appropriate role depends on the financial issues presented, the stage of the matter, and how counsel expects to use our work.
Consulting Expert Services
In a consulting role, we assist counsel in understanding and evaluating the financial issues presented by a matter. Our work may include reviewing financial records, assisting with financial discovery, analyzing transactions, evaluating damages or valuation issues, reviewing opposing expert analyses, and identifying areas requiring additional investigation. A consulting engagement can also assist counsel in preparing for negotiation, mediation, deposition, arbitration, or trial. Depending on the matter, we may develop financial schedules, test assumptions or calculations, identify questions for witnesses or opposing experts, and help counsel understand the financial implications of the information produced. The scope of a consulting engagement may evolve as additional information is produced and new financial issues are identified. Depending on counsel's needs, our work may remain advisory or may include analyses and schedules prepared to assist counsel. A consulting engagement does not necessarily result in an expert report or testimony.
Testifying Expert Services
In a testifying role, we perform the analysis necessary to develop independent opinions within the scope of the engagement and communicate those opinions through reports, deposition, arbitration, or trial testimony. Our work is prepared with the understanding that the information relied upon, methodologies applied, assumptions made, calculations performed, and resulting opinions may be examined by opposing counsel and other experts. The analysis must therefore be understandable from the underlying financial information through the resulting opinion.
Litigation Support Services
Financial issues can arise at any stage of a dispute, often well before an expert report is prepared. We assist counsel with financial discovery, analysis, and other litigation support as those issues develop.
Our litigation support services may include:
Financial discovery assistance
Review and analysis of financial records
Business valuation
Forensic accounting and transaction analysis
Economic damages analysis
Asset and fund tracing
Income and cash-flow analysis
Expert reports, schedules, and demonstrative exhibits
Deposition and trial preparation
Preparation for examination of witnesses and opposing experts
Deposition, arbitration, and trial testimony
Early involvement can be particularly useful where the financial records are extensive, incomplete, or maintained across multiple sources. Identifying the information necessary for the analysis before discovery closes can reduce the risk that important financial questions cannot be addressed because the underlying records were never requested.
The scope of our work is tailored to the financial issues requiring analysis. Some matters require a single focused analysis, while others involve a combination of valuation, forensic accounting, and economic damages.
Discovery and Financial Records in Litigation
Financial discovery is often the foundation for the analysis that follows. Identifying the records needed for a business valuation, forensic accounting review, or damages analysis before discovery closes can reduce the risk that a financial question cannot be fully addressed because the underlying records were never requested.
Depending on the matter, financial discovery may include:
Financial statements, general ledgers, and trial balances
Bank, brokerage, and merchant processor statements
Federal and state tax returns and related work papers
Prior valuations, appraisals, or financial due diligence reports
We work with counsel to identify the records needed for our analysis, formulate financial discovery requests, and evaluate the completeness of records produced. Where relevant financial information is held by a non-party, such as a lender, accountant, or business partner, we may assist counsel in identifying the records to request by subpoena. Where financial information is competitively sensitive, we coordinate with counsel on appropriate protective order terms.
Types of Matters We Support
Insight Forensic & Valuation Services supports counsel across a range of matter types. While the underlying financial and valuation methods are often similar, the litigation support issues that arise, and the way our role is applied, can differ meaningfully depending on the type of dispute. The following examples are illustrative only and are not based on any specific client or matter.
Shareholder and Partner Disputes
These matters often require a business valuation combined with a forensic review of distributions, compensation, and related-party transactions to evaluate allegations of self-dealing. Consulting support is frequently needed early in the matter to help formulate the financial discovery requests a valuation ultimately depends on.
Marital Dissolution Matters
Where a spouse owns an interest in a closely held business, our role often involves coordinating a business valuation with income and asset tracing, and preparing counsel to examine the opposing financial expert on the valuation methodology and underlying assumptions applied.
Commercial Contract and Business Tort Litigation
An economic damages analysis in these matters often depends on financial records and market data that must be identified and requested well before the damages period closes, since the reliability of a but-for scenario depends on the completeness of the historical and projected financial information available.
Fraud and Asset Recovery Matters
These matters frequently require forensic accounting and asset tracing support on an expedited basis, particularly where counsel is evaluating a pre-judgment remedy, such as an asset freeze or receivership, before assets can be dissipated or concealed further.
These examples are not exhaustive, and many matters present issues spanning more than one category. For more information about our valuation and forensic accounting methodologies, see our Business Valuation Services and Forensic Accounting Services pages.
Review and Rebuttal of Opposing Experts
An expert review involves more than determining whether we agree with another expert's conclusion. We evaluate how the analysis was developed and whether the resulting opinion is supported by the information and methodology presented.
Depending on the assignment, we may evaluate the opposing expert's scope, methodologies, assumptions, adjustments, and conclusions, as well as the financial information relied upon and how the analysis was reconciled.
We may also test calculations, compare assumptions with the underlying financial records, identify inconsistencies, and evaluate the effect of alternative assumptions where appropriate. A different conclusion does not necessarily indicate an error. Our review focuses on understanding what drives the difference and whether it materially affects the analysis or resulting opinion.
How our findings are communicated depends on our role and the needs of the matter. This may include discussions with counsel, financial schedules and other analyses, assistance preparing for examination of opposing experts, written reviews or rebuttal reports, and deposition, arbitration, or trial testimony.
Developing and Communicating Our Opinions
Our analyses begin with the financial questions presented by the assignment. We identify the information necessary to address those questions and determine the appropriate methods and procedures based on the nature and scope of the analysis.
We review the financial records, agreements, discovery materials, market information, and other available information relevant to the assignment.
Information provided to us is evaluated in conjunction with the available records. Material assumptions and representations are identified as such rather than presented as independently verified facts.
Where information is missing, incomplete, inconsistent, or cannot be corroborated, we consider whether additional procedures or information are necessary and evaluate the effect on our analysis. If an issue cannot be resolved, we identify the limitation rather than assume an unsupported explanation.
Valuation assignments require consideration of the applicable valuation date. Our opinions are based on information known or reasonably knowable as of that date. Subsequent information may be considered when it provides insight into circumstances that existed as of the valuation date, but later events are not treated as though they were known at that time.
Our conclusions are developed through an independent evaluation of the information and circumstances relevant to the assignment. We apply the same analytical standards regardless of the party that retained us, with our opinions grounded in the financial information, the analysis performed, and our professional judgment.
Admissibility of Expert Testimony
Before a testifying expert's opinion reaches the trier of fact, it must generally satisfy the court's gatekeeping function under the admissibility standard applicable in the jurisdiction, most commonly the framework associated with Daubert v. Merrell Dow Pharmaceuticals in federal court and many state courts, or the Frye general acceptance standard retained in others. [NEEDS VERIFICATION: a citation for Daubert and for the rule it construes, and a source for which jurisdictions retain Frye.] These standards focus on whether the expert's methodology is reliable and was reliably applied to the facts of the matter, not simply whether the resulting opinion appears reasonable.
Common grounds for challenging financial and valuation testimony include an unsupported or unreliable methodology, assumptions not tied to the facts of the matter, undisclosed bases for an opinion, and a lack of relevant qualifications for the specific financial issue presented. We address this risk by using generally accepted methodologies and documenting assumptions and data sources as the analysis is performed, rather than reconstructing them afterward.
Financial Findings and Legal Determinations
Financial analysis and legal determinations serve different purposes. Our role is to analyze and interpret financial information and, where appropriate, develop opinions within our areas of expertise.
Financial records may show that funds were transferred, transactions lack supporting documentation, or reported financial results require adjustment. These findings may be significant to our analysis without determining the legal characterization of the underlying activity.
We do not make legal determinations regarding intent, liability, or the legal characterization of financial activity. Those determinations are reserved for counsel and the trier of fact. Where the available information supports more than one reasonable financial interpretation, we identify that uncertainty rather than present an unresolved matter as established fact.
The same distinction applies to valuation adjustments. An adjustment to reported financial results reflects the economic analysis appropriate to the valuation assignment. It does not, by itself, indicate that the underlying transaction or accounting treatment was legally improper.
Retaining Insight for a Litigation Matter
Early coordination with counsel helps establish the scope of the engagement, identify relevant deadlines, and determine the information needed to begin our work.
At the outset, we generally request enough information to understand the matter and our anticipated role. This typically includes the parties and entities involved, the nature of the dispute, and relevant deadlines or valuation dates.
The records required for the substantive analysis depend on the assignment. Common requests may include financial and accounting records, tax returns, banking information, ownership and governing documents, transaction records, and relevant litigation materials.
We do not necessarily need every potentially relevant document before an engagement begins, and we update our requests as the financial issues become better understood. Timing depends on the scope and complexity of the assignment and the availability of records, so identifying key litigation deadlines early helps ensure sufficient time for analysis and review.
Our fee arrangements for litigation matters are generally structured as hourly engagements, consistent with the professional and ethical standards applicable to independent expert work. Contingent or result-based fee arrangements are not appropriate for a consulting or testifying expert, since our compensation should not depend on the outcome of the matter or the conclusions reached.
Discuss an Expert Engagement
If you are evaluating whether a matter requires business valuation, forensic accounting, economic damages analysis, or other financial expertise, we can discuss the financial issues presented and the scope of assistance that may be appropriate. Contact us to discuss an engagement.
Common Questions
Our professionals hold credentials that may include Certified Public Accountant, Accredited in Business Valuation, Certified in Financial Forensics, Accredited Senior Appraiser in Business Valuation, Accredited in Appraisal Review and Management, Certified Fraud Examiner, and Master of Business Administration.
Yes. Our combined valuation and forensic accounting capabilities allow us to address matters in which the reliability of reported financial information, owner compensation, related-party activity, personal expenses, or other disputed transactions may affect value.
Yes. We value privately held businesses, family limited partnerships, limited liability companies, holding companies, and other closely held ownership interests for lifetime gifting, estate planning, succession planning, and gift and estate tax reporting.
Fair market value is generally understood as the price at which property would change hands between a hypothetical willing buyer and hypothetical willing seller, neither being under compulsion to act and both having reasonable knowledge of the relevant facts. The precise standard applicable to an engagement is determined by governing law and the advice of the client's legal and tax professionals.
Not necessarily. A partial ownership interest may have rights, restrictions, benefits, and risks that differ from those associated with control of the entire entity. The analysis may require consideration of voting rights, distribution rights, management participation, transfer restrictions, redemption provisions, marketability, and other characteristics of the specific interest.
No. Their applicability and magnitude depend on the economic characteristics of the subject interest, governing documents, ownership structure, financial condition, distribution capacity, market evidence, and other relevant facts.
The appraiser should generally be retained early enough to review the contemplated transfer, governing documents, ownership structure, valuation date, and available financial information in coordination with counsel and tax advisors.
Yes. A valuation may be updated for recurring or staged gifting programs. Each valuation must reflect the relevant valuation date, current financial and operating information, ownership structure, governing documents, and market conditions.
Yes. We may perform a valuation as of a prior transfer date, date of death, or other historical date. Retrospective valuations require careful consideration of information known or reasonably knowable as of the applicable valuation date.
Yes. Depending on the engagement, we may provide consulting observations, a written appraisal review, rebuttal analysis, or an independent valuation opinion.
A valuation engagement generally includes the valuation approaches and methods the appraiser deems appropriate and results in an opinion of value. A calculation engagement applies valuation approaches and methods agreed upon with the client and results in a calculated value. The appropriate engagement type depends on the purpose, intended use, governing requirements, and advice of counsel or other advisors.
The required information depends on the entity and purpose of the assignment but commonly includes financial statements, tax returns, ownership records, governing agreements, transaction information, forecasts, and information concerning compensation, distributions, and related-party activity.
Yes. We assist counsel in identifying financial records relevant to valuation, income, tracing, ownership, transactions, and other disputed financial issues.
We may identify transactions that are unusual, insufficiently documented, inconsistent with other records, or outside historical patterns. We describe the financial evidence and quantify the economic effect where appropriate.
No. We analyze and describe the financial evidence but do not make ultimate legal determinations regarding intent, fraud, dissipation, concealment, misappropriation, or liability.
Yes. We may assist counsel in a consulting capacity without issuing a valuation report or providing testimony, depending on the engagement and applicable requirements.
Yes. When retained as a testifying expert, we may provide written opinions, deposition testimony, and testimony at arbitration or trial.
Yes. Our analysis is based on the evidence, applicable methodologies, professional judgment, and scope of the engagement. We are retained by petitioners and respondents, plaintiffs and defendants, business owners, fiduciaries, and other parties.
Yes. We provide valuation, forensic accounting, and expert services nationwide, subject to the requirements of the particular engagement and jurisdiction.
Discuss an Expert Engagement
Contact us today to schedule a confidential consultation or conflict check.
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