Background

The client, the owner of a chain of wine bars and hotels in London, was going through a divorce and had obtained an expert valuation of the business as part of the settlement process. However, the client was unhappy with the valuation received, and required a second opinion. The client approached FRP, and Partner Fiona Hotston Moore was initially instructed to give a high-level opinion as party adviser on the valuation report of the single joint expert.

Action

In FRP’s view the valuation had been significantly overstated, and our opinion reflected the belief that the valuation methodology was not appropriate. In light of our opinion, the client then obtained permission from the court to allow us to prepare a full court-compliant valuation report as party expert. This report included commentary on the single joint expert report, as well as our own assessment of the value of the business. We were required to provide our party expert report within a week of receipt of the instruction.

Outcome

FRP’s valuation of the business was approximately £4 million. This valuation was significantly lower than that of the original expert, who valued the business at approximately £9 million. The Family Court considered both reports and decided to put a valuation on the business mid-way between the two. The client was pleased with the outcome, which in his view was a fairer position.