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Commercial Dispute Business Valuations

Commercial disputes (often between co-owners) can cripple a business and destroy value.  When these disagreements are irreconcilable the next step is for business owners to separate.

In these cases an independent commercial dispute business valuation backed by rigorous analysis aims to provide a fair and equitable outcome.

Key Commercial Dispute Business Valuation Issues

  • Have the operations and performance of the business been appropriately documented?

  • Are there any partnership or shareholder agreements that may impact the business valuation?

  • What is the most appropriate and defend-able business valuation method for your business?

  • What defend-able conclusions from performance and the business valuation assessment can be made and documented?

  • How can the emotion be taken out of the assessment of the value of the business?

  • What balance sheet issues impact the commercial dispute business valuation?

Our business valuations deal with these issues and others that arise during the dispute process. 

 

Our aim is to undertake a clear and transparent process so that all parties understand how we arrive at our business valuation conclusions.

We have the expertise and experience in carrying out a commercial dispute business valuation to deal with all of these issues and more.

Commercial Dispute Business Valuation
Business Valuation 101

Who Gets To Read a Commercial Dispute Business Valuation?

 

In a commercial dispute, especially one that is complex and has dragged on, many experts and related parties​ will end up seeing dispute documentation - including the business valuation.

But in order to get a resolution there are only three parties that need to really understand the commercial dispute business valuation:

  • Your solicitor.

  • The opposing party's solicitor.

  • The court judge and barristers (if it has progressed to a court matter).

The common thread with each of these parties is that they are very knowledgeable, even experts, in there field.  They will have a very detailed commercial awareness.

But, in most cases, none of them will have a clear understanding of business valuation.  Nor will they have the inclination to learn the theory.

The legal people simply want an answer that can be communicated simply and clearly.

So the overwhelming priority for a commercial dispute business valuation is clarity and brevity.  As a result of this:

  • Only important and relevant information must be included in a business valuation report.

  • Conclusions must be clear and transparent.

  • Evidence must be justified and relevant.

This is a core strength of Exit Value Advisers in ensuring not just that we have technically excellent commercial dispute business valuations, but that we can explain our conclusions and process clearly.

Our Business Valuation Consulting Experience By Industry

Our business valuation consulting experience has included almost every industry and business within the SME sector.  It has spanned traditional sectors such as manufacturing, transport, retail, cafe  and food related businesses to the latest technology development, IT and professional services firms.

We have made a more detailed list of our business valuation consulting experience by industry.

 

If you want to discuss your business or industry issues with us, send us an enquiry.  We are always happy to discuss the business valuations issues and trends from your industry and particular to your business and circumstances.

What Does A Commercial Dispute Business Valuation Provide?

A commercial dispute Business Valuation is typically subject to a greater level of scrutiny than other business valuations, but otherwise is no different, except in three key areas:

  1. They need to be documented to a greater standard, and comply with court standards for expert reports.

  2. The analysis undertaken is typically more conservative in nature.

  3. The process from data to analysis and then conclusions must be clear, concise and consistent.

The key outcomes typical of a commercial dispute business valuation include:

  • Clear statement of the business valuation range.

  • Scope on which this business valuation has been based.

  • Supporting evidence and information relied upon.

  • Methodology adopted and any assumptions relied upon.
  • Clear explanations of business analysis​

A commercial dispute business valuation must demonstrate:

  • Clear arguments and reasons for any conclusions.

  • Must be based on reliable and clear evidence.

  • Adherence to court standards of evidence and expert reports.

  • Be completed in a manner that is consistent with current standards and methodologies.

Commercial Dispute Business Valuation
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