Client Study

Background

A large privately held company needed a probate valuation followed by share acquisition in exceptionally difficult circumstances. The minority shareholders were credited with the company’s recent profitable growth and they had also been responsible for day-to-day operations. They therefore felt strongly that their contribution should be recognised and should translate into an outcome that reflected their hard work and commercial impact. At the same time, there was a need to satisfy both the acquirer and estate executers that the valuation and pricing was fair and accurate.

Our Approach

We were approached to undertake the work on the basis of the firm’s reputation and experience in this area. A detailed analysis of all areas of the business needed to be undertaken. This involved conducting in-depth research analysing key customers and suppliers alongside an evaluation of the marketplace to assess risks, trends and opportunities. Due to the nature of the relationships between the shareholders, there was a requirement to test fundamental assumptions in trading forecasts. In addition, a thorough examination of all functions of the business was also required in order to benchmark certain key discretionary costs and define realistic levels of maintainable earnings for directors and staff.

The Outcome

Our work resulted in a final valuation alongside robust, irrefutable evidence. This enabled the acquirer and all parties involved to agree the terms and share pricing and satisfy the executors of the estate that sufficient value had been derived.

Client Feedback

“This was a difficult and contentious matter and it was important to work with a trusted and experienced firm who would be mindful of the circumstances of the case and who could deliver a valuation that was realistic and fair for all parties. The team demonstrated a skilled and pragmatic approach and gained and maintained the respect of all parties throughout the process.

They produced highly detailed, accurate information and this, combined with deft handling and an ability to deliver eloquent, rational reasoning to support their conclusions meant that no party could dispute any aspect of their final recommendations: this saved considerable time and money.”

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