Equity Value Enhancement

Preface

An investment banker introduced me to her attorney friend who had a client whose trust held shares in a 10-figure annual sales distributor. Most of the equity was derived from her mother's passing. Her mother's brother (her uncle) controlled both the company and her trust. Her uncle retained a national appraisal firm to substantiate an unusually low value both for estate tax purposes and to use the value to negotiate a buyout of her brother's and her shares. Both she and her brother, who had his own counsel, felt they were being slighted. They alleged their uncle was underreporting company performance and assets held. They alleged he had breached his fiduciary duty. They were worried about a drawn-out and costly confrontation with their uncle.

They just wanted what was bequeathed to them. This was a six-figure retention, which would balloon to a seven-figure engagement, which would allow me to acquire a dream ranch that offered equine therapy for both veterans and a retreat for business owners as well as well as solitude for my wife to do her art.

This book starts with this story because it sums up nicely how to distinguish between a “check-the-box” analyst who is evaluated by hourly rates and the expert who understands the premium placed upon wisdom and mastery that solves irretraceable problems. Think of Showtimes' Ray Donovan (Liev Schreiber) as a “fixer” of messes (without the gun).

Compare this with a recent communication with an attorney who had expressed on a listserv ...