Professional opinion represents a view (typically in writing) of an expert’s position on a particular subject. The opinion is provided upon the request of a person in need of this opinion.
The author is sometimes an independent expert who can present his/her opinion without the request of an interested party. Sometimes the opinion is given openly following the request of a stakeholder and in response to that person’s needs.
An accountant’s opinion can be given with respect to the financial conditions and conduct of a company, an assessment of financial losses resulting from certain events such as insurance claims, an evaluation of a compromise agreement, and more.
Professional opinion services can be necessary in matters of insurance damage evaluation, transactions, calculation of the division of goods between business partners, etc.
When business owners are faced with an insurance case, a shares sale request, a court or mediation case for any other reason, they will sometimes be required to present a financials’ expert written opinion. Each party brings such a document to support its position. The mediator or judge will then decide which opinion can support a more in-depth and precise analysis of the situation.
When is an expert’s opinion necessary:
A financials’ expert written opinion is required in a wide range of business, legal and economic situations:
1. Insurance claims
In most insurance claims, ongoing negotiations take place between the two parties in order to calculate the cost of the incurred damages, amount that must be accepted by both parties. Often, insurance companies estimate these damages at values that are lower than the claimant’s estimate.
For example, a water leak in a company can create direct damage (damage to the walls and computers, repair costs, and lost of working days), as well as indirect damage (reputational damage in relation to customers’ trust, loss of future customers, image damages, interest for late compensations, damages in the value of the company after it was closed following the insurance case, etc.).
A financial expert will do everything in his or her power to accurately calculate the direct and indirect damages and include in their statement a reasonable price for the purposes of judicial or extrajudicial negotiations between the parties.
2. Selling a business or part of it
Selling a business and calculating its value is one of the most complex issues in the world of accounting and law. When a business or part of it is sold, a financial advisor’s opinion will serve as the basis for estimating the value of the transaction, calculating the shares of the remaining partners, the division of property, and more.
For example, if two business partners decide to part ways, there are several separation methods: selling half of the company to a partner who will continue to operate the company, dividing the assets of the company and distributing them among the partners, selling the assets of the company to a third party and dividing the value among the partners, etc.
An economist can help calculate the value of the assets that cannot easily be quantified, such as brand value, reputation value, employee value, etc.
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