In any divorce where one of the spouses owns a business interest, that interest must be valued.  Usually in Dallas County Texas divorces, the attorneys will hire a forensic business valuation expert with ABV accreditation to perform such valuation services.  That expert will need certain documents in order to perform his valuation, including:

Financial Statements for Typical Corporation

  • Balance sheets, income statements of changes in financial position, and statements of stockholders’ equity for the last five fiscal years.
  • Income tax returns for the same years
  • Latest interim statements and interim statements for comparable period(s) of previous year

Other Financial Data

  • Summary property, plant, and equipment list and depreciation schedule
  • Aged accounts receivable summary
  • Aged accounts payable summary
  • List of marketable securities and prepaid expenses
  • Inventory summary, with any necessary information on inventory accounting policies
  • Synopsis of leases for facilities or equipment
  • Any other existing contracts (employment agreements, covenants not to compete, supplier agreements, customer agreements, royalty agreements, equipment lease or rental contracts, loan agreements, labor contracts, employee benefit plans, and so on)
  • List of stockholders, with number of shares owned by each
  • Schedule of insurance in force (key person life, property and casualty, liability)
  • Budgets or projections, for a minimum of five years (if management prepares)
  • List of subsidiaries and/or financial interests in other companies
  • Key personnel compensation schedule, including benefits and personal expenses

Company Documents

  • Articles of incorporation, bylaws, and any amendments to either
  • Any existing buy-sell agreements, options to purchase stock, shareholder agreements, restrictions on transfer, or rights of first refusal
  • Franchise or operating agreements, if any

Other Information

  • Brief history, including how long in business and details of any changes in ownership and/or any bona fide offers recently received
  • Brief description of the business, including position relative to competition and any factors that make the business unique
  • Marketing literature (catalogs, brochures, advertisements, and so on)
  • List of locations where company operates, with size and recent appraisals
  • List of competitors, with location, relative size, and any relevant factors
  • Organization chart
  • Résumés of key personnel, with age, position, compensation, length of service, education, and prior experience
  • Personnel profile: number of employees by functional groupings, such as production, sales, engineering/R&D, personnel and accounting, customer service/field support, and so forth
  • Trade associations to which the company belongs or would be eligible for membership
  • Relevant trade or government publication (specially market forecasts)
  • Any existing indicators of asset values, including latest property tax assessments and any appraisals that have been performed
  • List of customer relationships, supplier relationships, contracts, patents, copyrights, trademarks, and other intangible assets
  • Any contingent or off-balance sheet liabilities (pending lawsuits, compliance requirements, warranty or other product liabilities, estimate of medical benefits for retirees, and so on)
  • Any filings or correspondence with regulatory agencies

Download pdf here: Preliminary Documents and Information Checklist for Business Valuation of Typical Corporation or Business Entity

View online here:  Preliminary Documents and Information Checklist for Business Valuation of Typical Corporation or Business Entity

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Photo of Michelle O'Neil Michelle O'Neil

Michelle May O’Neil has 27 years’ experience representing small business owners, professionals, and individuals in litigation related to family law matters such as divorce, child custody, and complex property division. Described by one lawyer as “a lethal combination of sweet-and-salty”, Ms. O’Neil exudes…

Michelle May O’Neil has 27 years’ experience representing small business owners, professionals, and individuals in litigation related to family law matters such as divorce, child custody, and complex property division. Described by one lawyer as “a lethal combination of sweet-and-salty”, Ms. O’Neil exudes genuine compassion for her client’s difficulties, yet she can be relentless when in pursuit of a client’s goals. One judge said of Ms. O’Neil, “She cannot be out-gunned, out-briefed, or out-lawyered!”

Family Law Specialist

Ms. O’Neil became a board-certified family law specialist by the Texas Board of Legal Specialization in 1997 and has maintained her certification since that time. While representing clients in litigation before the trial court is an important part of her practice, Ms. O’Neil also handles appellate matters in the trial court, courts of appeals and Texas Supreme Court. Lawyers frequently consult with Ms. O’Neil on their litigation cases about specialized legal issues requiring particularized attention both at the trial court and appellate levels. This gives her a unique perspective and depth of perception that benefits both her litigation and appellate clients.

Top Lawyers in Texas and America

Ms. O’Neil has been named to the list of Texas SuperLawyers for many years, 2011-2018, a peer-voted honor given to only about 5% of the lawyers in the state of Texas. In 2014-2018, Ms. O’Neil received the special honor of being named by Texas SuperLawyers as one of the Top 50 Women Lawyers in Texas, Top 100 Lawyers in Texas, and Top 100 Lawyers in DFW. She was named one of the Best Lawyers in America for 2016 and received an “A-V” peer review rating by Martindale-Hubbell Legal Directories for the highest quality legal ability and ethical standards.

Author and Speaker

A noted author, Ms. O’Neil released her second book Basics of Texas Divorce Law in November 2010, with a second edition released in 2013, and a third edition expected in 2015.  Her first book, All About Texas Law and Kids, was published in September 2009 by Texas Lawyer Press. In 2012, Ms. O’Neil co-authored the booklets What You Need To Know About Common Law Marriage In Texas and Social Study Evaluations.  The State Bar of Texas and other providers of continuing education for attorneys frequently enlist Ms. O’Neil to provide instruction to attorneys on topics of her expertise in the family law arena.