Expert valuation leads to out of court settlement

Background

FRP Partner Fiona Hotston Moore was instructed as single joint expert in a matrimonial case in the family court, to value a company owned by one party. The company was in the events sector and had been significantly affected by the COVID-19 global pandemic.

Action

To assess the value of the business our Forensic Services team undertook detailed financial analysis of the company’s historic financial accounts, together with the management accounts and financial projections. The team considered the most appropriate valuation methodology for the company, which took into account the substantial adverse impact of the pandemic.

The team’s report explained the assumptions made and the methodology used, as well our expert’s opinion on liquidity, the ability to extract a capital sum, and any future maintainable earnings.

Outcome

After our expert’s report was submitted to both parties the matter was promptly settled without the need for a court hearing. The instructing solicitors noted that the clarity of the report had assisted the parties in understanding the financial position and reaching an agreement on the financial settlement.