Qualifications matter – Don’t cut corners on business valuation experts

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Abstract: When selecting a business valuation expert, you may find that the least expensive candidate isn’t necessarily the most qualified one. This article summarizes a recent California Court of Appeals case. Although the trial court found a breach of fiduciary duty, the appellate court affirmed the decision to deny damages because the plaintiff had failed to provide credible evidence regarding the value of his business interest. A sidebar explains the challenges of valuing start-up companies, like the one in this case. Zaffarkhan v. Domesek, No. G054604, Cal. App., May 18, 2018