RS Forensic is frequently engaged to prepare business valuations in the context of a wide range of contentious matters, such as:

  • Shareholder, partnership & franchise disputes
  • Contractual disputes
  • Consequential loss claims
  • Expert determinations
  • Warranty claims
  • Termination of commercial agency

We also undertake business valuations, usually as single joint expert, in the context of matrimonial disputes. On average, we formally value 4-5 businesses per month and advise on the value of many more.

We prepare business valuations on an advisory basis, as an independent expert or as shadow expert depending on the client’s needs and the relevant proceedings. We often act as advising forensic accountant or independent expert on behalf of one party to the dispute, but may also be appointed to act as single joint expert on behalf of both parties.

Business valuations are heavily based on experience combined with the use of fundamental valuation methodologies. There are many factors to consider when preparing a business valuation in addition to the financial performance of the business. We take a commercial and pragmatic approach to business valuations and ensure that we understand the key drivers behind the business and think beyond the numbers.

Our expertise in contentious business valuations is strengthened by the fact that we work closely with valuation specialists in the RS Corporate Finance team who regularly help clients to buy and sell businesses. Our RS Corporate Finance colleagues also undertake non-contentious business valuations for the purpose of  business incorporations, share incentive schemes and in contemplation of future exit from the business.

Forensic accounting team

Typically instructed to provide independent and objective expert witness and advisory services in relation to matters involving owner-managed SME businesses.

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Forensic cases

Shareholder dispute

Valuation of a non-emergency ambulance services company and its subsidiary in the context of a claim for unfair prejudice by the father of the majority shareholder. Our valuation was used in negotiations for the purchase or buy back of the petitioners' shares and we provided tax advice on the structure of the settlement agreement. The valuation was made more complex as part of the shareholding to be valued had no voting rights attached, therefore the value associated with the voting rights had to be separated from the value of capital rights attributed to shares.

Completion accounts dispute

Appointed as advisor to the sellers to assist with the preparation of submissions to the expert in a completion accounts dispute following the £70 million sale of a group of nursing homes. The sellers were initially expected to pay out £5 million under the terms of the sale and purchase agreement but, following submissions prepared by the RS Forensic team, the buyer ultimately paid £900k to the sellers.

Warranty claim

Appointed to advise the seller of a hair and beauty product retailer in relation to warranty claims brought by both parties following the £20 million sale of the business. The seller had a strong £3 million claim compared to the buyer’s largely unsubstantiated but significantly higher value claim. We assisted our instructing solicitors and counsel to draft a robust defence to the buyer’s warranty claim and the case ultimately settled on a basis favourable to our client before proceedings were issued.

Forensic accounting testimonials

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