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:
- Obtain an overview of the case from both the client firm and his/her attorney.
- Based upon these overviews, I request materials and data needed to conduct my work.
- I review the materials and prepare my expert witness report.
- 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.
Marc has been a valued consultant over the years. The Practice Management series uses his experience and “no-nonsense” approach to accounting firm management issues. If you are a constant learner about the profession as we like to be, the series is a requirement.
Larry G. Autrey
Managing Partner, Whitley Penn
Ft. Worth, TX