Expert Witness Testimony

We have represented CPA firms in a number of disputes, including:

  • The valuation of a deceased partner’s interest in a CPA firm that had no buyout provision in their partner agreement.
  • The valuation of a terminated partner’s interest in his former firm.
  • Determination of reasonable compensation for a firm partner.
  • Validity of justification for CPA firm non-compete and non-solicitation agreements.
  • A Tax Court case in which I testified regarding the extent to which the compensation earned by several partners of a firm was or was not reasonable and excessive.

Our typical approach is as follows:

  1. Obtain an overview of the case from both the client firm and his/her attorney.
  2. Based upon these overviews, I request materials and data needed to conduct my work.
  3. I review the materials and prepare my expert witness report.
  4. Testify in court, if necessary.

When a case requires us to put a value on a CPA firm, we do this based on our knowledge of:

  • How partners internally value their firms for partner buyout purposes.
  • An evaluation of dozens of factors that determine a firm’s value such as profitability, the firm’s location, the firm’s personnel, compatibility with other firms.
  • What the market is currently paying for firms similar to the firm under evaluation.

 

 

Testimonials

I find these writings extremely useful in my role as managing partner. I attend many PM seminars, read a lot of books on professional services and listen to a lot of the top CPA firm consultants. The content in your books brings together in one place the best practices preached by all of these experts.

Charles Postal, CPA, Managing Partner
PBMares (Santos Postal & Co., PC)
Rockville, Maryland