A mediation works best when the forensic accountant is an active participant and partner in bridging valuation divides, strategizing solutions and explaining the benefits of settlement proposals to their client. Forensic accountants should see themselves as a valuable resource for the mediator in the establishment of values and income and fashioning settlement options with that information. Forensic accountants should take advantage of their superior knowledge of tax and assets to help their client navigate settlement options. Attorneys should partner with forensic accountants in mediation in weighing proposals with a client, relying on their experience and knowledge.
Explore the nature of historical versus implied ERPs, unconditional v. conditional ERP estimates, Damodaran’s implied ERP model, default spread models, Hassett’s implied ERP model and Duff & Phelps “take” on it all. And, does size really matter in calculating the cost of equity?