Shareholder dispute valuation support.

First agree what question needs an answer

A disagreement between shareholders may involve the whole-company value, the rights of an individual holding, a historic valuation date or the treatment of particular costs. These are different questions. List the points that are agreed and those still disputed before asking for a conclusion. A clear brief can prevent the valuation becoming another source of disagreement.

The agreement may matter as much as the accounts

Articles of association, shareholder agreements and relevant exit provisions may prescribe the valuation basis, appointment process or treatment of a departing owner. Do not assume that a commercial market-value calculation answers a contractual question. Ask your solicitor to clarify the instructions where legal interpretation is required; valuation work does not decide legal entitlement.

Separate factual differences from valuation judgements

One shareholder may use annual accounts while another relies on a more recent forecast. Reconcile the starting numbers and establish what information was available at the relevant date. Then identify judgement areas, such as sustainable earnings, owner replacement costs, customer dependency and comparable evidence. This makes it easier to see why two values differ.

Illustration: a disputed earnings adjustment

Suppose reported operating earnings are £180,000 and one owner proposes adding back £60,000 of their pay. If their work still needs to be done at a £45,000 cost, the illustrative net adjustment is £15,000, not £60,000. The resulting £195,000 is only an earnings illustration. Whether that treatment is appropriate depends on the agreed basis, the evidence and the actual role.

Independence and the form of appointment

We assess conflicts, suitability and the proposed scope before accepting an instruction. A valuation for negotiation is not automatically an expert determination or a report for court proceedings. In England and Wales, formal civil expert evidence falls under a separate procedural framework. Tell us about any solicitor, contractual appointment clause, proceedings or intended third-party reliance at the outset.

A proportionate first conversation

Your initial enquiry can identify the company, the disputed interest, your role and any deadline without sharing confidential documents. A business valuation prepared by an ICAEW Chartered Accountant can then be scoped around the appropriate financial question. No settlement, litigation outcome or acceptance by another party is promised.

Prepare your valuation enquiry

• Shareholder agreement, articles and relevant exit clauses
• Valuation date and the interest being valued
• Agreed financial information and disputed adjustments
• Proposed appointment terms and intended recipients

Discuss the scope and cost of an affordable valuation before commissioning work.