Background

The client, a business providing services in the construction sector, was involved in a professional negligence claim against a firm of solicitors, arising from the advice given in relation to the corporate finance transaction regarding the disposal of the business. The company was claiming for a resulting loss, as the sale consideration was substantially less than was anticipated. The client approached FRP for advice and Forensic Services Partner, Fiona Hotston Moore, was engaged as party expert witness to give a valuation of the company at the time of the sale, which had taken place around 10 years earlier.

Action

Our Forensic Services team prepared financial and market analysis looking at the information available at the time of the sale. Our valuation considered the relevance of alternative methodologies and explored the value that an alternative purchaser might have placed on the company. Following the valuation, a joint report was prepared, combining our teams’ findings with the findings from the other party’s expert who provided an alternative view.

Outcome

The matter was settled just prior to the court hearing, in favour of our client. The lawyers said the work undertaken by FRP had placed the client in a good position to negotiate the deal achieved.