Background

FRP’s Forensic Services Partner, Fiona Hotston Moore, was engaged as party adviser to provide support for the minority shareholders of a company in relation to a dispute regarding the valuation of their shares upon exiting.

An independent expert was appointed to determine the value of the company and our client’s shareholding, along with our engagement to prepare a submission to the independent expert on behalf of our clients.

Action

The Forensic Services team reviewed the available information on the company as well as market data and arrived at a valuation range which was significantly higher than the original offer. Upon submitting our findings to the independent expert, we also provided comment on the other party’s submission.

Outcome

Our findings successfully assisted the independent expert in understanding our clients view, as the valuation outcome from the expert determination was substantially higher than the original offer to our clients. As a result, the consideration payable to our client was considerably higher and the costs of the expert determination were borne by the other party.