OK, I didn't get our business fully evaluated, but I did look at a comparable value.
First, did your X own the business prior to M, or did you buy it together? IF so, he may be assuming that X owns a higher %.
Now, did the appraiser look at the "value" from a number of points.
1. Return on Sales. For every business type there is a standard value based on sales/revenue.
2. Earnings stream.
2. Asset value, if you liquidated, what would be the value of the corporate assets.
3. Extra investment in the business, had you bought additional inventory or purchased hard assets which decrased the income of the company, but would benefit the long term gain. If this occurred, the value should be adjusted upward.
Ok, these are just ideas, but the evaluator should have given you a number of scenarios. Now, if you sold the business outright in an open market, you would likely use a "broker" (like a realtor) who charges a fee for his services. Is the difference in the "sale" price and the "divorce" price possibly the difference here?
I didn't want my X's business, so I came up with a realistic value of the growth in the business and in the hard assets during the M, and since I did the books, I had a good idea of these. I decided that it was far better for me to keep my retirement intact than to go after his business. I think the dollar amounts of the 50/50 split were about equal.
So, my feeling is if you feel you are getting "shafted" in this calculation, make it up elsewhere to end the issue.
If the evaluator isn't playing fair, then you can pay to get another estimate.
