Dispute & Divorce Valuations

Valuations in Dispute & Divorce

Our Dispute and Divorce valuation experts are committed to supporting you, even in difficult situations, as we understand that determining the value of a business or shareholding during a dispute or in the case of a divorce and civil partnership dissolutions is often a complex and emotional process.

Our team of experts have a wealth of experience advising in dispute circumstances, including:

• Open or unspoken disputes between shareholders;
• Married or civil partnership business owners going through a divorce that require a valuation of their business;
• Business owners going through a divorce where only one party is actively involved in the operations of the business;
• Circumstances of a minority shareholder exiting or buying-in to a business, and challenging minority discounts

Valuation

Our team of valuation experts at Price Bailey regularly advise on the value of businesses in divorce or dispute. We can also act as a Single Joint Expert for the Court on matrimonial and divorce valuations.

In divorce or dispute scenarios, our typical remit is to advise on all or some of the following:

• Value of the company,
• Value of the parties’ share in that company,
• Tax implications of a disposal of the shares,
• Level of sustainable remuneration drawn from the company, and/or
• Liquidity.

A valuation in these scenarios is typically conducted on a market value basis i.e. between a willing buyer and a willing seller, utilising standard valuation methodologies. There are circumstances where other, non-traditional, methodologies are more appropriate.

By taking the time to understand the business model, operations, the particular circumstances and the timing of the valuation, you can have confidence that our team will take the most appropriate approach for your particular circumstance.

Our approach

When we are asked to provide a valuation for a dispute or divorce scenario, due to the likely presence of mistrust in these scenarios, often a negotiator is needed. In these circumstances, and where we are not acting as the Single Joint Expert, we will undertake the valuation work but our supportive team can also facilitate those negotiation conversations and will act in an objective role to ensure the best outcome for all.

Often we are engaged to advise only one side of the divorce or dispute. In these circumstances, we are typically engaged to provide a valuation report that provides valuation opinion both for the business as a whole and their shareholding within it. On behalf of our clients, we will produce a valuation report or letter that clearly sets out the basis of our valuation opinion, the methodology(s) employed and why other methodologies were not deemed appropriate. We will also support you during conversations with the other party(s) valuation advisors in order to try and reach a mutually agreeable outcome.

Our team of experts are both valuers and strategic corporate finance advisors, meaning that we have the wealth of skills and experience to support you in navigating difficult negotiations and ensuring that commercial reasoning is at the centre of any outcome.

Single Joint Expert

Our role as Single Joint Expert is to assist the Court in providing independent, impartial evidence to support a valuation opinion. Our appointment is agreed by all parties to the divorce or dispute and our first duty at all times is to the Court.

The head of our Strategic Corporate Finance team, Simon Blake, is an experienced expert witness for the Court and leads a team advising on complex matrimonial disputes, civil partnership dissolutions and commercial disputes.