Forensic Accounting & Litigation working with lawyers

Background and Issue

Business/Share Valuations for Matrimonial cases – Armstrong Watson receive numerous instructions on a regular basis to carry out a Valuation of the business interests and/or shareholdings of one of the separated parties in order to present information as part of court proceedings or simply to assist the instructing Solicitors in reaching an agreement between the separated parties so as to reach an overall financial settlement.

Why Solicitors seek to work with us

Armstrong Watson are recognised as a Firm with strong specialist skills in this area, working over a wide range of sectors with particular reference to Family Businesses. We also have easy access to other specialist colleagues across all of our service lines, when more detailed input is necessary on each case.

What we did

This can involve the Valuation of a number of different businesses or simply a shareholding in a larger business. Typically this will involve a collation of relevant information, and a Valuation report which can be presented to Court as necessary. Our Experts have experience of attending Court to provide evidence as required.

The Result

We are respected by instructing Solicitors for giving a fair and balanced view within our Valuations, and our Reports help achieve settlement, with matters rarely reaching Court.

Background and Issue

Business/Share Valuations for Estate confirmation cases – We are also instructed regularly where a business , or shares in a Company need to be valued for estate confirmation purposes, and for appropriate distribution of assets to beneficiaries.

Why Solicitors seek to work with us

As with Case Study 1, we are recognised as taking a pragmatic approach and achieve agreement promptly with HM Revenue & Customs and other stakeholders as a result.

What we did

This can involve the Valuation of a number of different businesses or simply a shareholding in a larger business. Typically this will involve a collation of relevant information, and a Valuation report which can be presented to HM Revenue & Customs or for beneficiaries who are taking over specific business assets .

The Result

We are respected by instructing Solicitors for giving a fair and balanced view within our Valuations, and our Reports help achieve prompt agreement with HM Revenue & Customs and can give valuable assistance to Solicitors in allocating Assets to beneficiaries in the process of wionding up Estates.

Background and Issue

Fraud Investigations- We receive numerous instructions to investigate an organisation where fraud has been discovered or is suspected.

Why Solicitors seek to work with us

We demonstrate our skills in collating evidence and reporting clearly on quantum to assist in either Civil recovery action from the perpetrator or with supporting Criminal prosecutions.

What we did

A recent example being when Armstrong Watson was instructed in a case where the treasurer of a Not for Profit organisation was suspected of fraud. An investigation was carried out and detailed evidence was uncovered of fraud. This consisted of principally of unauthorised cash withdrawals and Business credit card transactions which could not be reconciled to bona fide business expenditure. Our Report presented appropriate evidence and quantum of loss to the organisation.

The Result

Our Report and evidence not only led to the prosecution of the individual concerned, but assisted in the full recovery of the stolen funds.

Background and Issue

Share Purchase Agreement Disputes – We are instructed in a number of such cases, typically following disputes over aspects of the purchase or sale of a business, or where minority shareholder interests are being prejudiced.

Why Solicitors seek to work with us

We are recognised as having a very strong offering across our Forensic Accounting, Corporate Finance and Restructuring, Recovery & Insolvency service lines, meaning that truly Expert input is available for any eventuality.

What we did

One example being a disputed interpretation of the Clause of the Share Purchase Agreement dealing specifically with the additional consideration due on finalisation of the Completion Accounts. We carried out an investigation into the disputed points and gave expert opinion on the correct technical interpretation.

The Result

By giving clear opinion we were able to persuade and influence the respective Advisers, leading to agreement between the parties.

Background and Issue

Shareholder Disputes – We  are often instructed where there is no Shareholder Agreement in place, so as to assist in achieving appropriate resolution or settlement.

Why Solicitors seek to work with us

We are recognised as having a very strong offering across our Forensic Accounting, Corporate Finance and Restructuring, Recovery & Insolvency service lines, meaning that truly Expert input is available for any eventuality.

What we did

We are working on a current case where a Company is being wound up at the insistence of the majority shareholder, however the minority shareholder is in disagreement on the value of his shares. We are assisting with a Forensic Accounting investigation into a variety of matters including excessive Management Charges, inflated Sub contract charges and other irregularities over a number of years which appear to have suppressed value in the Company. Our Report will be used in evidence to negotiate a settlement or potentially for production as part of court proceedings.

The Result

The parties have now come to a satisfactory settlement after reviewing the contents and recommendations in our report.

Background and Issue

Loss of earnings Claims- We are regularly instructed by Personal Injury Lawyers and other Lawyers who refer similar claims where financial input is required.

Why Solicitors seek to work with us

There is typically a financial analysis required in assessing the quantum of such claims and we are recognised for our skills in this area.

What we did

We are instructed regularly to give expert opinion on the calculation of Loss of earnings across a range of business situations. This can be for business interruption claims where there has been a fire or flooding, or for illness on personal injury situations where a key employee or business owner has been absent from the Business. A detailed review of the historic and current accounting periods is often required to establish what confirmed loss would be.

The Result

Typically, we will present a logical, fair and balance view of loss of earnings, supported by clear evidence and argument, thus assisting our legal connections to settle cases promptly and for the optimum benefit of their clients.