Whether for financial, estate tax, investment, insurance or legal purposes, there has been a significant increase in the need for business valuation expertise. As members of the National Association of Certified Valuation Analysts (NACVA), we have acquired the knowledge and ability to establish the worth of an enterprise.
Litigation support involves the quantification of economic damages pursuant to existing or pending litigation using accounting and auditing techniques. We have experienced competent staff who can compile information efficiently to assist in the calculation and documentation of any potential economic loss or damages.
Is your valuation expert Rule 26A compliant?
Our services include:
- Business valuations
- Electronic discovery assistance
- Business valuations for SBA loans
- Expert witness testimony
- Lost profits/damage calculations
- Allocation of acquisition price
- Buy/sell agreements
- Estate and gift taxes
- Franchise valuation or evaluation
- Gifting programs
- Fraud and impropriety review
- Litigation services related to:
- Disruption of business
- Divorce
- Economic loss analysis
- Dissenting shareholder actions
- Partner disputes
Who We Are
Andrew Runge, CPA, CFE, CVA,
ABV, MBA
Director of Valuation and Litigation Support
Andrew has over 17 years of experience in insurance services, forensic accounting / investigation, economic damages and business valuations. He has consulted on hundreds of economic damage, lost income, bodily injury, wrongful death, employee dishonesty, construction and other insurance claims exceeding $200 million in the United States and abroad. Andrew has prepared numerous business valuations of privately held companies as a whole and as partial interests. He has also provided forensic accounting, fraud investigation and litigation support services including assistance in case analysis, preparation for trial and expert witness testimony. He has experience with construction, insurance, manufacturing, computer, biotechnology, medical, hotel and hospitality, farming and animal husbandry, retail, mining and other industries.
- Extensive experience in management, financial accounting; fraud and forensic accounting; business valuation; mergers and acquisitions; and estate and retirement planning.
- Extensive experience in civil and criminal fraud investigations, contract and business disputes, computations of damages, and complex litigation.
- Extensive industry experience in construction, insurance, agribusiness, manufacturing, health care and service industries.
- Designated expert in business matters, including fraud and embezzlement, accounting, damages, business interruption, business valuation, intellectual property, insurance fraud and damages and related issues.
Andrew has provided consulting assistance to insurance companies and policy holders for more than 15 years. During that time he worked on more than 1000 insurance claims with claimed losses in the hundreds of millions of dollars. He has experience in a wide variety of industries and claim areas. He has been designated as an expert in numerous cases and has provided expert testimony related to insurance matters in depositions, binding arbitrations, insurance appraisals and in court appearances.
A sampling of the types of claims Andrew has consulted on include:
| More than 25 | – | Personal Service Firms such as Accounting, Law and Engineering Claims |
| More than 20 | – | Course of Construction Claims |
| More than 500 | – | Business Interruption Claims |
| More than 25 | – | Employee Dishonesty / Fidelity Claims |
| More than 15 | – | Jewelry Claims |
| More than 100 | – | Restaurant Claims |
| More than 100 | – | Retail Claims |
| More than 25 | – | Manufacturing Claims |
| More than 200 | – | Extra Expense Claims |
| More than 50 | – | Coinsurance Calculations |
| More than 20 | – | Farming / Agribusiness/Food Processing Claims |
| More than 25 | – | Loss of Rents Claims |
| More than 25 | – | Computer/Data Claims |
| More than 25 | – | High Tech / Biotechnology Claims |
Selected Recent Presentations:
- “Preliminary Understanding of Business Valuation Methodology and Terminology” - Howard County Neo-Tech Incubator – Columbia, Maryland, 2003
- “Evaluating Commercial Insurance and Risk” - Worldwide Partners Annual Meeting, Boston, MA , May 2004
- “Forensic Accounting in the Real World” – Guest Lecture - Villa Julie Forensic Studies Graduate Program Baltimore, Maryland, 2004
- “Forensic Accounting Issues “ Maryland Association of Certified Public Accountants – Cambridge, MD – May 2005
- “Forensic Accounting Issues “ Maryland Association of Certified Public Accountants – Frederick, MD – May 2005
- “Selling Your Personal Financial Planning Business” – Maryland Association of Certified Public Accountants, Towson, Maryland - June 2005
- “Forensic Accounting Issues “ Maryland Association of Certified Public Accountants – Gambrills, MD – July 2005
- “Forensic Accounting Issues “ Maryland Association of Certified Public Accountants – Oakland, MD – September 2005
- Lorman Education Services, Business Valuations, August 28, 2007
- Maryland Defense Counsel – Issues in Electronic Evidence September 2007
DEPOSITIONS AND TESTIMONY
(prior 4 years as of November 30, 2007)
Stellar Investments v. PRIS-MM, LLC
Circuit Court for Baltimore County, Maryland,
November 2007
Leiter’s Fine Catering vs. IDEARC Media Corporation
Before American Arbitration Association Commercial Tribunal, Arbitration Testimony, August 2007
NetVersant v. Kenneth Michael Simmons
Circuit Court for Baltimore County, Maryland
Deposition Testimony September 2006 Arbitration Testimony March 2007
American Home Medical, Inc., et a v.
Masterline, Inc., et all
United States District Court for the
District
of Maryland
Deposition Testimony June 2006
Perkins V. Dill
Circuit Court for Baltimore County, Maryland
July 2005
Parisi’s Diamond Trust v. Great American Insurance Company
Circuit Court for Anne Arundel County, Maryland July 2005
Patuxent Technology Partners, LLC
v. Frank Davis, et al.
Case # 13-C-03-054350 Circuit Court
for Howard County, Maryland Deposition Testimony 2004
James Pomfret, et al v. Light House Point Chiropractic Personal Training & Whole Health Center, L.L.C., Et al
Case #24-C-03-002690, MD, 2004
Expert Designation
Slaybaugh Enterprises, LTD., v. Toys “R” Us – Delaware, Inc., et al
Case # WDQ-03-3232, United States District Court for the District of Maryland, Northern Division, MD, 2004.
Deposition Testimony 2004
Integrated Media Solutions, Inc. v. Baltimore County Conference and Visitors Bureau, Inc.
Case # 03-C-02-010357, Circuit Court for Baltimore County
Deposition and Trial Testimony 2004
Robert E. Hickman v. Modern Equipment Sales and Rental Co., et al
Case #03-CV-02170-AMD, MD, Circuit Court of Maryland for Baltimore County, 2004.
Expert Designation
MK Technology Trading, Inc., et al v.
Belcan Engineering Group, Inc., d/b/a McGraw Eng. & Design, et al
Case #2001-04-HRW, United States
District Court Eastern District of Kentucky
at Ashland, 2002.
Deposition Testimony 2002
S2I Corporation, et al. v. Paul P. Rakowksi, Sr. et al.,
Case # 20-C-02-004615OT Circuit Court,
Talbot County MD, 2003.
Expert Report, Deposition – Trial Testimony August 2005
Royal Insurance Company of America,
as subrogee of Klein’s Supermarket
Case # 03-CV-00590-AMD, United States
District Court for the District of Maryland,
2003-2004. Expert Report
Erie Insurance Exchange and
Lamusa Design v. Lowe Enterprise
Mid-Atlantic, Inc.
Case # 6297-01, Superior Court of the
District of Columbia, 2002
Deposition Testimony
Other Testimony:
- Owens v. Peninsula Insurance Company - Deposition and Trial Testimony
- Woodmont Country Club - Deposition Testimony
- Packaging Machinery - Deposition Testimony
- Triple Power Zipper - Deposition and Binding Arbitration Testimony
- Charles Brothers - Deposition Testimony
- Kovens v. Kovens – Deposition Testimony
- California Concepts – Deposition Testimony
Member of: AICPA, MACPA, NACVA, CFE
Timothy D. Lott, CPA, CVA
Director, N/L Healthcare Management Advisors
tlott@nlgroup.com
CV
Tim provides consulting services to healthcare professionals and practices with expertise in start-ups, mergers, transitions, tax and retirement planning, financing assistance and budgeting. He has a specific concentration on consulting to the dental professional on associate, partner and shareholder arrangements, practice management, revenue enhancement, practice purchase, sales, buy-ins
and buy-outs and the related tax issues. His CVA (Certified Valuation Analyst) designation enables him to consult with the dentist who is looking to buy or sell a dental practice. His expertise in the dental arena serves as a useful tool to those dental professionals who want to know how their practices compare to others in the industry and he helps them monitor their key profitability statistics. Tim has been a speaker at various dental study club meetings, D.C. Dental meetings and other healthcare related groups.
Member of: AICPA, MACPA, NACVA, MSDA, AGD
Key Considerations in a Business Valuation:
- Purpose of Valuation - The reasons for a valuation are many and varied. These include buying or selling a business, estate or tax planning, divorce/marital dissolution, business disputes, civil litigation and business value planning and maximization.
- Standard of Value - Depending on the purpose for the valuation, different standards of value may apply. The IRS utilizes Fair Market Value as the standard for tax related transactions including estate valuation and planning, goodwill impairment and other IRS matters. Shareholder disputes and marital dissolutions may have a prescribed standard of value based on state or federal statute, such as Fair Value. In determining the acquisition or selling price of a business, Investment Value may be utilized. The standard of value is typically determined by the venue and purpose of the valuation.
- What is to be Valued - While seemingly a simple concept, this is often overlooked. Depending on whether the valuation is for all of the stock of a company, some percentage of the company - either a controlling or noncontrolling interest, or for the assets of the company - the determination of value will be impacted by the nature and amount of any discounts or premiums required. For instance, a 51% controlling interest is typically worth more than a 51% pro-rata share of the total value of the company, while a 49% minority interest is typically worth less than a 49% pro-rata share of the company value as a whole.
- Valuation Date - The value of any item is not a static amount. As the price of gasoline varies on a daily basis, the value of any asset or stock varies as well. Thus, the valuator must determine the value at a particular valuation date.
- Valuation Approach - Each business or entity is different. In valuing a company, the valuator must consider many elements of the business including its capital structure, assets, and operating history and determine the most appropriate method(s) of valuation. Three basic types of methods are used, based on Assets, Income or Market Comparisons.
- Level of Service - Differing levels of service may be appropriate, depending on the purpose and the intended usage of the valuation. For instance, in IRS matters, ESOP reports, litigation engagements or for less sophisticated users, a Formal Appraisal Report may be appropriate or required. For less formal purposes or for more sophisticated users, a concise Indication of Value Letter may be appropriate. For particularly narrow purposes, a Limited Scope Engagement in which only agreed upon procedures are performed may be applicable.
It is wise to consider these key elements in any valuation in order to obtain the proper valuation relevant for your situation, in the form it is needed and at the appropriate cost. Then you can start worrying about that cascading fountain of financial information.
For more detailed information, contact Andrew Runge (410) 453-5500 ext.1601.
We are proud to support the Baltimore County Bar Association and the Maryland Defense Counsel.
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