Forensis new layout June 2017

Summer 2017 Latest news and updates from the Roffe Swayne Forensic Accounting teamWelcome to our new look update forforensic accountancy news and updates.Welcome to our new look Forensis for forensic accountancy news and Kate Hartupdates. In a market with an ever-changing backdrop of laws and Forensic Partnerlegislation, we aim to provide you with our views on current topics, aninsight into some of our recent experiences and details of what is going 01483 416232on in the world of forensic accounting, which we hope you will find [email protected] and helpful. @KHartForensicIn this update, we take a brief look at the growing trend for involving aforensic expert, provide you with our top tips for getting the most out ofyour forensic accountant and consider that issues behind valuing a familyrun business. We also provide you with details of two exciting upcomingevents for this summer: our financial settlements workshops, takingplace in Godalming and London this June, and the release of ForensicAccounting & Finance: Principals & Practice, my first fore into the world ofbeing an author.Growing recognition of the benefits Graph for the growing recognition of theof involving a forensic expert benefits of involving a forensic expertAccording to the latest This growth supports our opinion that theresearch of the Network benefits of the involvement of a forensic expertof Independent Forensic are becoming more widely recognised.Accountants, of which RoffeSwayne is a member, there According to the research, the network sawhas been a 21% increase in an increase in case numbers across all areascases during 2016. with the exception of personal injury cases, reflecting the continued reluctance of the Court to involve experts, and mediation, an this increase reflects a growing awareness of area previously highlighted as one where the the benefits of early involvement of forensic benefits are as yet unrecognised. experts – in our experience this can often lead to prompt settlement. A marked increase in While involvement in matrimonial disputes expert determinations was also noted as “NIFA remains very much the ‘bread and butter’ members provide a cost effective means of of the network, where single joint expert resolving financial disputes”. appointments continue to dominate, members saw a substantial increase in the number of shareholder disputes handled. We believe Roffe Swayne Forensis Summer 2017 | 1

Getting the most out of your forensic accountantand keeping costs downThe involvement of a help to identify the best way to formulate a loss process. Providing all requested informationforensic accountant in any claim and head off counter arguments. as soon as possible will allow the forensicsort of dispute, whether accountant to complete the engagement bothcommercial or family, is 2. Decide what you need before approaching quickly and efficiently.perceived by many to be a your forensic accountantconfusing and costly route. Set out clearly what you want the forensic The biggest inefficiency we experience accountant do, including deadlines and regularly is being drip fed information.As the costs rack up in any dispute, there can costs - these need to be realistic. We oftenbe a reluctance to progress with an instruction find that the process of agreeing instructions 5. Keep talkingthat may be invaluable. After all, you need to gets delayed as a result of the client or their Good communication with your forensicknow the quantum of a claim in order to know advisors instructing us to do additional work. accountant is vital to ensure that bothwhen and for how much you should settle it. Sometimes there is little or no value to be deadlines and budgets are adhered to. The gained from this work and it represents no forensic accountant should be kept informedThere are actions that can be undertaken to more than a point scoring exercise. The whole about all relevant developments in a case.ensure that costs are kept to the minimum and process can be halted while the extent of our Where a forensic accountant is appointed bycorners are not cut. In fact, in our experience, work (and costs) are negotiated. one party, treat them as a member of the team.the cases where the client has got the most outof our relationship are those where we have Knowing what you need will allow the forensic 6. Be organisedbeen involved as part of the team from the accountant to hit the ground running as soon Being organised yourself will allow yourstart. as the instructions are received. forensic accountant to be so too.Getting the most out of your forensic account 3. Ask for what you actually need 7. If you don’t know, askand keeping costs down should go hand in Forensic accountants focus on the detail. If If you’re not sure what questions to ask, discusshand. With that in mind, here are our top tips you ask them a question, they will answer that it with the forensic accountant, particularly infor achieving both. question and only that question. If you ask the single joint expert appointments. Initiating wrong question, the forensic accountant will such a conversation between the parties to a1. Involve the forensic accountant sooner answer that wrong question. This is particularly dispute and the forensic accountant may beOften we are engaged as an afterthought the case when you have appointed a single difficult but could save a lot of time arguingor because litigation has progressed and an joint expert who may not be in a position to or and then asking the wrong questions.expert report is required for the court. The have the knowledge to enable them to pointtrouble with this is that the client runs the risk out the error. Being specific in the drafting and Following these tips will ensure that you getof racking up costs. This may be because they ensuring that you explain the purpose of a the most out of your forensic accountant whilehave been barking up the wrong tree or need question will minimise this risk. keeping costs down.to rush to meet predetermined deadlines. Theearly involvement of a forensic accountant can 4. Provide information promptly Legal disputes can be stressful and it may be attractive just to bury your head in the sand. However this will only result in a drawn out2 | Roffe Swayne Forensis Summer 2017

EventFinancial settlements –are your clients getting thebest deal?It goes without saying that settling a dispute as deferred consideration, could end up Next datessaves money, time, stress and reputational increasing your client’s tax liability by up todamage. But one aspect often overlooked 280%. 14 June in Godalmingduring negotiations that can dramatically 28 June in Londonimpact the ‘take-home’ amount are the tax Our workshops are interactive sessions usingimplications. case studies to highlight and discuss these and To book your place please email other key issues surrounding the settlement of [email protected] you represent commercial or financial disputes from both commercial andmatrimonial clients it’s likely that at some point tax perspectives.you will be dealing with the structure of asettlement agreement.Different options in structuring the deal canhave a huge impact on the amount of moneythat ends up in your client’s pocket. Somethingthat appears to work for both parties, suchCase study Valuing a family run businessWe are often engaged to We have the added benefit of the capacity to Initially the valuation appeared quite straightassist with valuing family work closely with our tax team. That way we forward as the business had been establishedrun businesses. Whether can identify practical methods of mitigating and operated profitably for many years.for the purpose of settling the taxes payable on the disposal or transfera family dispute, divorce of shares such that our clients achieve the best Problems arose, however, when consideringproceedings or assessing the financial settlement possible. the assets of the business where the linevalue of a party’s interest on between personal and business had becomeexiting a business, we are We were recently engaged to prepare a blurred. The company was operating fromhere to help. valuation of a family run haulage company and had made significant improvements to in the context of a divorce. The company was property owned by the brothers, including owned by the husband and his two brothers constructing buildings. With no lease in place, and operated from land owned personally by the value of these buildings was attributable the brothers. to the brothers personally and the value of the company diminished by an equal and opposite amount. Further, as the buildings were effectively gifted to the brothers by the company, there were personal tax implications to consider. For owners of smaller family-run companies it can be difficult to differentiate between business and personal assets. We understand that this is something that only matters once circumstances change. It’s not an issue from day to day but, in the event of a dispute or shareholder departure, it is important to be able to distinguish between the two. Sometimes unpicking the position can lead to some unexpected (and unwelcome) consequences, particularly with regard to the tax position. Whilst we can help with these we always recommend putting in place appropriate documentation in advance and are happy to discuss what is required. Roffe Swayne Forensis Summer 2017 | 3

Kate Hart has Written in association with the Network ofcontributed to the first Independent Forensic Accountants, Forensictextbook for forensic Accounting & Finance sets out relevantaccountants examples, incorporating case studies, to illustrate the theory.Alongside twelve other contributors eachwith a strong background in practice, Kate’s Forensic Accounting & Finance: Principals &two chapters cover forensic accounting in Practice is available for pre-order now frommatrimonial disputes and forensic accounting www.koganpage.com and all major print andin commercial disputes, looking at the principal e-book retailers.theory balanced with practical needs. The release date is 3 August 2017.What our Meet the team Sueclients say Nightingaleabout us Kate Hart Partner Senior Manager“You have produced an excellent Jessie King Jamesreport in respect of its presentation Assistant Reynoldsand clarity.” Manager Manager“Thank you to you for your hard work.The case settled yesterday on agreedterms.”“Thank you for the excellent supportwhich you provided us. It was not aneasy case and there were at times nighon impossible time limits to meet. Weall look forward to working with youagain in the future.” www.roffeswayne.comRoffe Swayne, Ashcombe Court, Woolsack Way, Godalming, Surrey GU7 1LQ. Tel: 01483 416232. Email: [email protected] | Roffe Swayne Forensis Summer 2017