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Division of Business Assets

Phoenix Division of Business Assets Attorneys Deliver Sound Guidance

Experienced Arizona lawyers protect owners’ rights in dissolutions

When business partners hit a fork in the road, each must look to the future while protecting their interests. At the Law Offices of Donald W. Hudspeth P.C. in Phoenix, our business law attorneys help stakeholders in small businesses protect their rights whenever circumstances compel owners to go their separate ways. These situations can involve the sale or dissolution of a company, the buyout of a significant contributor or a settlement and succession plan after a key player’s death. In such matters, each stakeholder should have separate counsel to protect their rights to company assets, including branding, community goodwill, intellectual property, contracts, real estate, equipment and inventory. The process can be complicated, so you should only trust your interests to an experienced business divorce lawyer. 

Knowledgeable firm assists clients with the proper valuation of business assets

A necessary starting point for a business divorce is to understand how much the business is worth. There are various methods experts use to determine overall value, such as:

  • Fair market value — This assessment attempts to gauge how much someone would be willing to pay to buy the company. To determine this amount, we can review bona fide offers and data on sales of similar companies to make a reliable comparison.
  • Capitalization of earnings — Under this process, experts assess a company’s future profitability based on its cash flow, annual return on investment and expected value. This method works for stable, established companies whose revenues don’t fluctuate wildly year to year, but is not recommended for startups poised for exponential growth.
  • Excess earnings method — Experts use this approach to divide a company’s earnings into separate streams for tangible assets and intangible assets. Developed by the U.S. Treasury in 1920, the process is popular for its simplicity, but has been criticized as unreliable. Nevertheless, it is often appropriate for professional practices and small businesses where a premium is placed on customer goodwill. 
  • Book value method — This is a snapshot approach, which simply subtracts liabilities from assets to determine whether a company is in the black and by how much. It’s important to understand that this method discounts intangible assets, such as brand strength and customer goodwill, and is not appropriate for companies that have expended resources in the development of new products that haven’t reached their market potential. 
  • Liquidation method — How much would you accumulate if you sold off the business assets? This method is appropriate when a company has invested heavily in real estate, equipment or patents which have inherent value. 

Depending on the specific circumstances, parties often use different methods in negotiations to highlight arguments in their favor. As your advocate, we explore various approaches to valuation in order to help you emerge with an appropriate share of business assets.

Experienced lawyers work to resolve business divorces favorably for clients

Ownership rights depend greatly on the partnership agreement or the articles of incorporation. These documents should detail each party’s rights in the event of sale, dissolution or buyout. However, questions often arise about the quality of a fellow owner’s performance or the value of their participation, and whether more or less than the agreed upon proportion of assets would be fair under the circumstances. Moreover, the cost of a buyout can often strain company resources to the breaking point. Our attorneys zealously protect our clients’ rights, and we are adept at finding creative solutions for even the most complex situations.

Contact our Phoenix law firm for representation during a business divorce

Law Offices of Donald W. Hudspeth P.C. in Phoenix provides reliable, effective representation for stakeholders in the distribution of company assets. To schedule a consultation with an experienced business divorce attorney, call our office today at 866-696-2033 or contact us online. Located in midtown Phoenix, our office is easily accessed by light rail or car, with plenty of available parking.

Donald W. Hudspeth Attorney Photo
Donald W. Hudspeth
Principal Attorney

Attorney Donald W. Hudspeth has more than twenty years’ experience practicing corporate and business law. Before attending law school, Mr. Hudspeth held a stock brokers license at the age of 21 and owned his own business at the age of 23. He was a business law professor at Arizona State University, West Campus, and has conducted classes and seminars for a number of higher institutions and organizations. Mr. Hudspeth has published two books on law and is the founder of the radio programs Law on the Edge and Law Talk.

Mark S. Hamilton Attorney Photo
Mark S. Hamilton

About Attorney Mark S. Hamilton has experience handling all aspects of civil and commercial litigation in federal, state, and tribal courts at the trial and appellate levels. Practice Areas Business litigation Commercial litigation Education University Of Hawaii Wm. S. Richardson School Of Law, Juris Doctor - 2002 University Of Hawaii, Master Of Arts in Asian…

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  • Arizona Sate University
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    Lawyers Of Distinction
    2020 issue of AZ Business Leaders

Our firm now offers a scholarship program for ASU first and second year law students.

The scholarship is awarded to students for academic merit with an interest in business and business law. Candidates may have majored in fields other than business, have taken a break between college and law school, or have had exceptional life experiences.

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  • "I would recommend Mr. Hudspeth unequivocally. Not only is he an outstanding business attorney, he also provided me with access to a divorce attorney. Thanks to his skill, and resources available outside the Phoenix law family, I was successful in challenging a “family law” mediation that was particularly and grossly unfair." - Chandler, Arizona Private Individual

  • "Thank you for the work you have done in creating these documents. It is always a pleasure dealing with this firm!" - J. P.

  • "An excellent response. Masterfully prepared. Thank you." - El Paso, Texas Real Estate Investor

  • "Glad about meeting with Don. Felt so much better, better than in 15 years. Really appreciated the conversation." - RH, Phoenix Manufacturing Company

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