How to Choose the Right Valuation Expert

When businesses, attorneys, investors, or shareholders need to determine what something is worth, they often turn to valuation experts. That might involve valuing a company for a transaction, calculating damages in litigation, assessing solvency in bankruptcy, or determining the value of an ownership interest in a shareholder dispute.

Waiting too long to engage a valuation expert can create serious problems as experts need time to gather information, analyze financial data, review discovery materials, and prepare reports.

The right valuation expert engaged early can strengthen a case, guide negotiations, and help parties resolve disputes more efficiently. The wrong expert, however, can create unnecessary costs, credibility problems, or even jeopardize a legal position altogether.

Selecting the Right Type of Expert

Valuation experts are used in a surprisingly wide range of situations. They assist with mergers and acquisitions, buy-sell agreements, estate planning, tax disputes, shareholder litigation, bankruptcy proceedings, divorce matters, and economic damages calculations. In each situation, the expert’s role is slightly different. Sometimes the valuation is purely strategic or transactional. Other times, it becomes central evidence in a contentious lawsuit.

When seeking a valuation expert, Jin Yan of ArentFox Schiff LLP stresses the importance of understanding the purpose of the engagement and why you need an expert to begin with.

This fundamental question matters because the goal of the valuation will differ depending on the context. For instance, a planning valuation may focus on tax efficiency or succession planning. A litigation valuation must survive scrutiny from opposing counsel, judges, and potentially juries. Not all valuation experts have the same areas of expertise, either. A professional who excels at business valuations in corporate transactions may not be the best fit for a bankruptcy solvency analysis or a marital dissolution case involving complex assets.

Depending on the case, transaction, or situation, valuation experts may evaluate:

• Business enterprises
• Real estate
• Intellectual property
• Financial instruments
• Stock options
• Personal property
• Economic damages

This is one reason experienced litigators often maintain relationships with multiple valuation professionals who specialize in different areas.

Understanding Standards of Value

Two standards commonly arise in disputes: fair market value and fair value. The distinction between the two can dramatically impact the outcome of a case.

• Fair market value generally refers to the price a hypothetical willing buyer and willing seller would agree upon in an arm’s-length transaction.
• Fair value, however, is often defined by statute or case law and is commonly used in shareholder disputes involving oppression claims, dissenters’ rights, or forced buyouts.

Michael Zdeb of Holland & Knight LLP observes that lawyers frequently look for experts who understand how standards of value differ across jurisdictions.

Brandi Ruffalo of Valuation & Forensic Partners LLC adds that understanding the standards is not enough. The real issue is whether the expert has defended that interpretation under pressure, which is why it is critical that any prospective valuation expert be questioned about their background and experience.

Communication Skills

Technical skill alone does not make an effective valuation expert.

Experts must also communicate complex financial concepts clearly and persuasively.

This includes:

• Writing understandable reports
• Explaining methodologies clearly
• Remaining calm under cross-examination
• Educating judges, juries, and clients

John Levitske of HKA Global LLC notes that litigation is inherently adversarial and that every opinion, assumption, and conclusion will likely be challenged by the opposing side. The best experts understand that their job is not simply to calculate numbers. It is to provide an independent, defensible, and understandable analysis that can withstand scrutiny.

The Role of Experts in Discovery

Valuation experts can play a major role in shaping discovery strategy.

In shareholder disputes, especially, one side may have incomplete access to company information, which can create significant valuation challenges.

This is where experienced experts can add tremendous value. They often help attorneys identify:

• Missing financial records
• Key accounting information
• Necessary deposition topics
• Relevant business metrics
• Industry benchmarks

Experts can help attorneys craft discovery requests and deposition questions designed to uncover the information necessary to perform a reliable analysis. And because valuation is often iterative, discovery rarely happens in a single round, with each production of information usually creating additional questions and follow-up requests.

An Important Distinction: Consulting vs. Testifying Experts

A consulting expert works behind the scenes. They may help attorneys evaluate claims, prepare strategy, review documents, and identify discovery needs. In many circumstances, communications with consulting experts may receive work-product protection. A testifying expert, on the other hand, provides formal opinions and testimony in court or arbitration. This distinction can significantly affect privilege and discoverability.

Under Federal Rule of Civil Procedure 26, communications with testifying experts may be discoverable in certain situations. Expert reports themselves must also contain detailed disclosures, including:

• The expert’s opinions and supporting reasons
• Facts and data relied upon
• Exhibits supporting the conclusions
• Prior testimony history
• Compensation information

For these reasons, lawyers and experts must think carefully about how they communicate and document their work from the very beginning of an engagement.

How Attorneys Typically Find Valuation Experts

Despite the highly technical nature of valuation work, the process of finding the right valuation expert is often surprisingly relationship-driven. Most experienced litigators develop relationships with experts over years of practice, often long before a case actually requires valuation testimony.

Referrals from respected valuation professionals can be especially valuable because experts are generally careful about protecting their own reputations. A well-regarded valuation professional is unlikely to recommend someone they do not trust or believe can perform competently in a difficult matter. In many ways, those referrals function as informal peer review within the industry.

Attorneys also frequently evaluate experts by observing them in educational settings. Industry conferences, CLE programs, webinars, and professional association meetings allow lawyers to see how experts communicate complex concepts in real time. That can be critical because a valuation expert’s effectiveness often depends on their ability to explain financial concepts clearly to non-financial audiences, including judges, juries, mediators, and clients.

Equally important is understanding how an expert approaches litigation itself. Some valuation professionals are highly technical but have limited experience with depositions, discovery disputes, or courtroom testimony. Others are seasoned testifying experts who understand how to work collaboratively with legal counsel, manage tight deadlines, and anticipate challenges from opposing experts.

Some law firms also maintain internal databases or informal lists of experts based on prior experience. Senior litigators often become internal resources for younger attorneys seeking guidance on which expert might fit a particular case. In especially large or high-profile disputes, firms may even conduct formal searches, interview multiple candidates, and evaluate prior testimony histories before selecting an expert witness.

Final Thoughts

Valuation experts have become indispensable participants in modern business disputes, transactions, restructurings, and litigation matters.  The most effective experts combine financial expertise with practical judgment, litigation awareness, and strong communication skills. Successful valuation engagements are built on preparation, collaboration, and trust. Attorneys who establish relationships with qualified experts early, involve them strategically, and carefully evaluate both technical skill and practical experience are far more likely to position their clients for successful outcomes.

To learn more about this topic, view Selecting the Right Valuation Expert. The quoted remarks referenced in this article were made either during this webinar or shortly thereafter during post-webinar interviews with the panelists. Readers may also be interested to read other articles about valuation.

This article was originally published on May 13, 2026.

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