Where a party involved in a divorce or separation is a business owner (or both parties are) it is imperative that an accurate and up-to-date business valuation is available in order for a fair financial settlement to be achieved.

We are experts in divorce business valuations, whether the business is a company, group, partnership or unincorporated entity. We have experience of a wide range of sectors and work closely with our corporate finance team to ensure our valuations are commercial rather than simply theoretical.

Where a divorce business valuation has been included with Form E disclosures we can assist by reviewing the valuation and advising on questions to be asked and additional information required.

We can also provide assistance on tax matters and liquidity in order to assist the parties to determine an effective split of assets or to release funds for a financial settlement. We can advise on the sustainable income which can be extracted from an owner-managed business on an ongoing basis without impacting its trade.

Case examples:

Valuation for collaborative meeting

Attending a collaborative meeting with the husband and wife to explain the valuation of their shares in a company providing light installation for private and commercial properties.

Valuation with and without the parties

Acting as single joint expert to value a company providing facilities management services on the assumption that the husband remains with the company or was to have no further involvement in the company. The valuation was complicated by the fact that a customer representing almost 50% of the company’s turnover had given notice to terminate its contract the month after the valuation was completed. Also instructed to comment on the taxes payable on the disposal of the parties’ shares and the liquidity of the company, including the funds which could be extracted and the maintainable income of the husband. Unusually, Kate was required to give evidence at the final hearing, following which the matter settled.

Valuation following downturn in performance

Appointed as single joint expert in matrimonial proceedings to value a company operating a children’s nursery owned jointly by the parties. The valuation was made more complex by the fact that the nursery had recently received a poor Ofsted report and was struggling to fill places as a result, despite the fact that a revised Ofsted report was received shortly thereafter. Also instructed to comment on the ways in which value could be realised either by the sale or transfer of shares and the resulting tax consequences.

Comments on financial disclosure

Appointed by the wife in divorce proceedings to comment on the financial disclosure of the husband in respect of his interests in three companies involved in the trading of commodities. The financial disclosure was very limited in respect of two of the companies whilst that in respect of the third supported a lower valuation than was being attributed by the husband.

Providing evidence at court

Appointed as single joint expert in matrimonial proceedings to value a company operating delivery vehicles for the construction industry. The valuation was made more complex due to upcoming legislative changes in the industry and actions taken by the company in responding thereto. Also instructed to comment on the liquidity of the company, the level of the husband’s sustainable remuneration and the most tax efficient means of extracting funds from the company without impacting its ability to continue to operate. We spent time understanding the business and the market in which it operates in order to conclude on its budgeting acumen and the extent on which we could rely on forecasts. Numerous forecasts were prepared for the purposes of divorce and Kate Hart was required to give evidence at the final hearing as to how she had used the forecasts and their impact on the valuation.

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