Expert Divorce Business Valuation
It is common to have a business tied up as part of any divorce or family law matter, and this is when an independent business valuation for divorce purposes can take the emotion out of the situation.
A business valuation in divorce cases becomes complicated as there is usually two opinions that are widely different. An independent expert business valuation provides a point of mediation.
We have experience in completing business valuations in divorce matters and providing single expert reports for family law court purposes.
Why is a Divorce Business Valuation Required
A business is part of the assets of the matrimonial estate, and needs an independent assessment of value to form part of any property settlement.
Even if a business has no profitability, there may still be some business assets that will contribute to the matrimonial pool and this will be crucial in determining any divorce settlement.
Exit Valuer Advisers are experienced matrimonial valuers Melbourne, Sydney and Brisbane, and can support your legal team with a formal business valuation for divorce purposes. We have acted as a single court appointed expert business valuer or hired by a single party.
Our focus is to deliver a valuation that all parties can understand which means your legal team have a better framework to defend your position or reach agreement. Download our Sample Report and Code of Conduct to see the level of detail and support that we provide.
Key Divorce Business Valuation Issues
What is the appropriate date for the business valuation?
Is the business to be valued as a going concern or is it under financial stress?
How can the emotion be taken out of the assessment of the value of the business?
Have the roles (and hence remuneration) of both parties been taken into account in a fair and equitable manner?
What level of documentation has been kept for the business and what assumptions need to be made to determine market value?
Will the business valuation result in capital gains tax implications?
What other assets related to the matrimonial estate are tied up in the business balance sheet?
Our valuations deal with these issues and others that arise during the family law matter. Our aim is to undertake a clear and transparent process so that all parties understand how we arrive at our business value conclusions.
We have the expertise and experience in carrying out a divorce business valuation to deal with all of these issues and more.
What Does a Divorce Business Valuation Provide?
Divorce Business Valuations are similar to Commercial Dispute Business Valuations, and often subject to a greater level of scrutiny.
There are two key areas of difference with other business valuations:
They need to be documented to a greater standard, and comply with court standards for expert reports.
The analysis undertaken is typically more conservative in nature.
The key outcomes typical of a divorce business valuation include:
Clear statement of the valuation range.
Scope on which this valuation has been based.
Supporting evidence and information relied upon.
- Methodology adopted and any assumptions relied upon.
- Clear explanations of business analysis
Business valuations for divorce 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.
We have detailed the features of a good divorce business valuation in our recent blog article.
Often we adopt a "joint process" where both parties are given opportunity to describe and comment on the business, its operations and performance. This helps to alleviate differences of opinion when a judgement is determined.
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.