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Business Valuation in Divorce Proceedings

Independent expert valuation of businesses, company interests, and professional practices in matrimonial proceedings.

Overview

Business valuation discussion in a boardroom

Independent expert valuation of businesses, company interests, and professional practices in the context of matrimonial proceedings. Covers SMEs, family businesses, professional partnerships, and shareholdings in private and listed companies. Multiple valuation methodologies, earnings-based, asset-based, market comparables, and discounted cash flow, are considered, disclosed, and justified in the expert report.

Valuation methodology and assumptions are disclosed in accordance with FRE Rule 702 and FRCP Rule 26 expert disclosure requirements.

When to instruct

Where one or both parties own a business and its value is in dispute, or where a fair value must be established for settlement purposes.

Valuing Businesses in Divorce

Where a party holds a business interest, its value is often central to the outcome. The court requires a fair valuation based on reliable methodology. Joint or court-appointed experts are frequently used for operating companies and professional practices.

Valuation Methodologies

  • Earnings-based: EBITDA or maintainable profit multiples
  • Asset-based: net asset value for holding companies
  • Market comparables and transaction data
  • Discounted cash flow where projections are reliable
  • Minority and marketability discounts for non-controlling interests