Trinity Introductory Newsletter
- 1. 2011 Introductory Issue A new resource has emerged for the 鍖nancial and legal community. Part- ners Wayne Kirk, Travis McMurray, and Jason Fleming are proud to an- nounce the launch of Trinity Valuation Consulting Group, PLC. Trinity was created to be a leading 鍖nancial consulting 鍖rm providing business valu- ation, litigation support, business transaction, and other consulting ser- vices. Although our of鍖ce is located in the Eastern United States, we are not constrained by geography. We service clients throughout the United States and abroad. Our professionals have provided services to compa- nies located up and down the East and West Coasts, Canada, and in some European and Mediterranean countries. Although our professionals are CPAs, Trinity does not provide traditional accounting services such as audit, tax, or bookkeeping. We serve our professional peers and are not in competition for the services they are providing. Our exclusive focus is business valuations, litigation support, business transactions, and other non-traditional consulting services. Trin- ity was created to provide a scope and depth of services that are not currently offered in our region or beyond. We like to think of ourselves as a Resource Center for attorneys, CPAs, and the clients they serve. The Trinity team consists of highly trained professionals who have earned advanced degrees in Accounting, Finance, and Business Administration. They have the experience, credentials, and expertise necessary to pro- vide the highest quality of service. Business Valuation Services Visit our website at Business valuations are performed for a variety of reasons, including es- www.trinityval.com tate/gift tax planning, divorce and shareholder disputes. Whatever the to learn more about reason, it is important to select a valuation 鍖rm that has the experience our services and sign necessary to develop an appropriate conclusion of value. At Trinity, our up for our e-newslet- valuation professionals have performed hundreds of business valuations ter. We do not share that have been accepted by mediators, the courts, and the IRS. In addi- your information with tion to being Certi鍖ed Public Accountants (CPAs), our professionals hold anyone. professional valuation credentials such as the Certi鍖ed Valuation Analyst (CVA) credential from the National Association of Certi鍖ed Valuation Ana- lysts (NACVA) and the Accredited in Business Valuation (ABV) designation from the American Society of Certi鍖ed Public Accountants (AICPA). Continued on page 2...
- 2. Continued from page 1... Litigation Support Services When preparing for litigation, it is important to select an expert witness that is experienced and respect- ed. The professionals at Trinity are well respected for their many years of experience in providing inde- pendent analyses and expert witness testimony. Our professionals have served in matters of mediation, arbitration and litigation. We also have been retained jointly by opposing attorneys and have served as court appointed experts. Our credentials, experience, and integrity have been utilized for many litigation cases including lost pro鍖ts, shareholder disputes, and marital dissolutions. Business Transaction Services The mergers and acquisitions specialists at Trinity have been involved in a variety of business transac- tions. Without professional expertise, many businesses do not sell. We work with business owners to make changes that will help ensure a successful outcome. We can assist in the negotiation process and deal structure. We also assist buyers with performing their due diligence so that they know they are getting what they are paying for. There are many advantages to having a professional represent your business during a transaction. Our experience helps to ensure you receive the price that your business is worth. We also serve to take the business owner out of the often emotional process of selling their business and negotiating with buyers. Other Consulting Services Our professionals have a breadth of experience to offer. We can assist clients with exit planning strategies, building company value, structuring buy-sell agreements, and ensuring an optimal capital structure. Exit planning is a crucial but often over looked component of a business plan. Even if you plan on leaving the business to your children or other family members, this transaction needs to be properly structured. Trinity can help you identify potential successors and can help structure the transaction to meet your needs. Many owners dedicate their entire lives to building a business but few truly focus on building the value of the business. Growing the business does not necessarily translate to increasing value. Trinity can put you on track to maximize the value of your business. Partners of Trinity Seated: Jason Fleming Standing left to right: Wayne Kirk and Travis McMurray
- 3. Goodwin v. Goodwin Court of Appeals of Tennessee, at Knoxville Divorce Filed February 25, 2010 Summary At the time of the parties divorce, their primary marital asset was a steel fabrication business. Hus- band and wife operated the business with their adult sons and husband acted as general manager and wife was the companys bookkeeper. Husband 鍖red one of his sons, who later found he had an inoperable brain tumor and died shortly after. Husband became severely depressed and had his wife run the business for a short time. After husbands return, he 鍖red his wife because of the way she operated the company in his absence. The parties separated shortly after. Husbands expert valued the business at $385,000 at the date of the wifes 鍖ring, while the wifes expert valued the business at $1.65 million. The wifes expert utilized a valuation date which was just months before the trial. The trial court accepted the valuation of the wifes expert and the husband appealed. The appellate court af鍖rmed the trial courts ruling, stating that Tennessee law requires valuing a marital business as close as reasonably possible to the date of trial and the wifes expert valued the business 19 months closer to the date of trial, when compared to the husbands expert. Farmers Insurance Exchange v. Hudson Court of Appeals, Ninth District of Texas at Beaumont Lost Pro鍖ts Delivered May 6, 2010 Summary The appellate court had to determine if the lower court erred in its calculation of lost pro鍖ts re- sulting from the termination of an agent by an insurance company. The agent was terminated after switching a customer to another insurance carrier. At trial, the agents expert calculated both pre- trial lost pro鍖ts, as well as post-trial lost pro鍖ts through the agents retirement, and date of death discounted to present value. The insurance company appealed the trial courts verdict, arguing that the three-month termination clause in the agency agreement should limit damages. The agreement provided that either party could terminate the agreement for any reason by simply providing three months notice. The agent argued that he was wrongfully terminated without notice, and the agree- ment did not apply. The court took the position that the measure of damages for a breach of con- tract is that which restores the injured party to the economic position he would have enjoyed if the contract had been performed, further noting, that the agent did not have a contract term for the rest of his natural life. The court further noted that the agency was not bound to employ the agent until he retired. As such, the court limited the agents damage claim to three-months lost income. Web: trinityval.com Trinity Valuation Consulting Group, PLC Email: info@trinityval.com 801C Sunset Drive, Suite 100 Phone: 423.232.0461 Johnson City, TN 37604
- 4. Trinity Valuation Consulting Group, PLC 801C Sunset Drive, Suite 100 Johnson City, TN 37604 423 232-0461 E. Wayne Kirk CPA/CVA E. Wayne Kirk is a partner in Trinity Valuation Consulting Group, PLC. He has been a Certi鍖ed Public Accountant since 1974 and has been actively involved with the valuation of companies since 1990. Mr. Kirk has 40 years kh 0 of experience in the healthcare industry. He also has experience in capital structuring and sourcing, growth/ exit strategies and creative transactional concepts. Prior to joining Trinity, Mr. Kirk was the managing part- ner of Business Valuations & Consulting and was the co-founder of Kirk & Fortner, CPAs. In addition to being a CPA, Mr. Kirk is a Certi鍖ed Valuation Analyst as desig- nated by the National Association of Certi鍖ed Valuation Analysts. Travis McMurray Jason Fleming MBA, CPA/ABV/CFF, CMA/CFM CPA/ABV/CFF Travis McMurray has been a tax Jason Fleming is a partner in Trinity partner with Blackburn, Childers & Valuation Consulting Group, PLC. Steagall, PLC (regional accounting Mr. Fleming is a Summa Cum Laude 鍖rm) since 2004. Mr. McMurray has graduate of East Tennessee State been in public accounting since 1992 and received both 92 d i d b th h University where he earned a B.B.A. in Accounting and a A d his B.B.A and M.B.A from East Tennessee State University. Master of Accountancy degree. Prior to joining Trinity, Mr. In addition to corporate and partnership tax, his areas Fleming worked as a senior consultant for a large regional of expertise include business valuations, mergers and CPA 鍖rm. In this role, he performed numerous business acquisitions, forecasts and projections, business start- valuations including that of healthcare entities such as ups, medical practice consulting and accounting systems physician practices, diagnostic imaging centers, and am- consulting. bulatory surgery centers. Mr. Fleming also has experience in litigation support including economic damages calcula- Mr. McMurray is licensed as a CPA in both Tennessee tions, lost pro鍖ts analyses, marital dissolutions, and and Virginia. He is Accredited in Business Valuations forensic accounting investigations. Mr. Fleming was also (ABV) and is Certi鍖ed in Financial Forensics (CFF). Mr. a partner in a multi-of鍖ce mergers and acquisitions 鍖rm McMurray is also a member of the Institute of Management where he oversaw the transfer of a variety of businesses. Accountants (IMA) and holds the designations of Certi鍖ed Management Accountant (CMA) and Certi鍖ed in Financial In addition to being a CPA, Mr. Fleming is Accredited in Management (CFM). Business Valuation (ABV) and is Certi鍖ed in Financial Forensics (CFF). He is also involved with a number of professional organizations.