When your court date arrives, your business valuation expert needs to do more than just show up with credentials and composure. A successful expert witness delivers a clear, credible valuation grounded in both technical accuracy and common sense.
The courtroom isn’t just about who’s right—it’s about who makes sense. If your expert can’t bridge the gap between valuation theory and real-world logic, you may lose the trust of the judge or jury—no matter how technically sound the analysis may be.
Here’s what your valuation expert should know before taking the stand—and how they can effectively challenge the opposition.
Apply Common Sense in Your Business Valuation Analysis
Technical accuracy is important—but it’s not everything. Your valuation expert should be able to look at the analysis and ask: Does this make sense?
In many cases, judges and juries lean on common sense to guide their decisions. If the valuation conclusion doesn’t align with logic or experience, it can undermine your case—regardless of the credentials behind it.
Example: In one case, the opposing expert valued a Jaguar dealership at just $156,000. But with Jaguars averaging $85,000 each—and the dealership providing two demo vehicles to the owner—it didn’t pass the sniff test. Our client won, not because our analysis was more technically impressive, but because our expert pointed out the obvious: the dealership was supposedly worth less than two cars it sold. That argument resonated with the judge because it was rooted in common sense.
Pro tip: When your expert applies valuation theory in a way that supports logical outcomes, they boost their credibility. When they point out where the opposing expert's analysis defies logic, they undermine the other side’s position.
Know the Valuation Studies Behind Your Expert Witness Testimony
A strong expert doesn’t just cite third-party studies—they understand them.
Your valuation expert should be familiar with any external studies used in both their own analysis and in the opposing expert’s report. Too often, experts reference well-known studies on discounts and premiums without reading or understanding them in depth.
In court, this is a major vulnerability.
What to watch for:
- Can your expert explain the methodology behind a key study?
- Can they summarize the findings and limitations?
- Can they challenge how the opposing expert applied the data?
Cross-examination tip: Ask the opposing expert detailed questions about the studies they reference. If they haven’t read them closely, it shows.
Double-Check the Math in the Opposing Business Valuation Report
Never assume the opposing expert’s math is correct.
Even small calculation errors can unravel an expert’s credibility. A misplaced decimal or incorrect formula can throw off an entire valuation—while giving your side an opportunity to raise doubt.
What your expert should do:
- Recalculate all figures from the opposing expert’s report.
- Look for inconsistencies, rounding errors, or unexplained assumptions.
- Be ready to highlight these in court with clarity and professionalism.
Math mistakes don’t just reflect poorly on the analysis—they call the expert’s thoroughness into question.
Challenge the Credibility of the Opposing Valuation Expert
Credibility is everything.
Your expert’s job is not just to defend your valuation—it’s to cast reasonable doubt on the opposing expert's conclusions. If there are gaps in the opposing analysis—math errors, unsupported assumptions, or unrealistic conclusions—your expert should tactfully expose them.
Key strategies:
- Highlight where the opposing analysis departs from industry standards.
- Challenge valuation methods that lack transparency or logic.
- Emphasize where common sense was ignored.
Remember: expert testimony is 20% about being right—and 80% about being believable.
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Final Thought
Your valuation expert can’t just be technically excellent—they need to connect the dots between the numbers and reality. That means grounding their analysis in common sense, mastering the studies behind their conclusions, double-checking the math, and respectfully challenging the opposition.
If you're preparing for litigation or need guidance on selecting a credible valuation expert, we can help.
