Business valuation in divorce

Business valuation in divorce

Didn't find your answer?

I have been asked to provide a valuation of a haulage partnership, where one of the partners is involved in a divorce.  There are no premises owned by the partnership.  The vehicles are all on HP, with only older vehicles fully paid for.  There is an annual profit of approx £50k, but most of this is taken as drawings, so consequently the balance sheet doesn't look particularly healthy.  I am concerned about the issue of goodwill.  I spoke to a commercial surveyor yesterday who didn't seem very confident in making an assessment himself.  

If anyone has advice regarding this, I would be really grateful.

Replies (2)

Please login or register to join the discussion.

avatar
By Tosie
02nd Sep 2011 17:03

Don't provide a valuation

This is a specialist area and you need a specialist valuer.Solicitors normally have a valuer working alongside their practices and both parties agree to the use of a particular valuer..

If you really want to get involved have a look at business for sale and compare your calculations.

You need to take into consideration the impact on the business if one of the partners is leaving.

The other side will challenge your valuation and  could end up having to write a  whole lot of letters with detailed calculations and assumptions.

Thanks (0)
David Winch
By David Winch
02nd Sep 2011 17:19

Expert witness

Have you been asked by a solicitor acting for one of the parties?  Have you previously had any connection with the business or any of the partners in it (if so your independence may be called into question)?

This is a specialist area.  You need to be aware of the requirements of Part 25 Family Procedure Rules 2010 and Practice Direction 25A amongst other things.

It is probably best to decline instructions if you are not familiar with business valuations for legal proceedings.

David

Thanks (0)