As forensic accountants we are regularly engaged to prepare business valuations for cases such as shareholder disputes, partnership disputes, matrimonial disputes, contractual disputes and consequential loss claims.
There are many factors to consider when preparing a business valuation in addition to the financial performance of the business. We take a commercial approach and ensure we really understand the drivers behind each business we value, before getting stuck into the numbers.
The strength and depth of our expertise in this area arises from the combination of our forensic and valuation expertise with that of our Corporate finance team, who regularly value businesses in contemplation of a future exit, for business incorporations and share incentive schemes.
We can prepare valuations on an advisory basis, as an expert or as shadow expert. Court ready expert reports can be prepared for one party to a dispute or on a single joint expert basis where we are appointed as an independent expert by both parties.
We also act in expert determinations, being the expert determiner to value shares under the terms of the articles of association or a shareholders’ agreement.
Valuation in defence of unfair prejudice claim
Appointed by the defendant in an unfair prejudice case to calculate the current market value of an accountancy practice and the market values but for the actions of the defendant. The parties were able to reach a settlement at a far lower cost to the defendant than the amount claimed.
Valuation following breach of contract
Appointed by the defendant to advise on the value of a claim brought by a former director with share options in a company providing cosmetic procedures following the removal of the director from the company. We were also appointed to calculate the value of a counterclaim for loss of profits as a result of the actions of the claimant in breaching a non-complete agreement. Our calculations were used at a mediation at which the case was settled.
Expert determination under articles of association
Appointed under the ICAEW President’s Appointment Scheme to value the shares of the departing shareholder in a digital marketing agency under the terms of the articles of association.