Case study
I was instructed as an expert witness by solicitors to the Defendants in a Commercial Court case involving an alleged directors’ breach of fiduciary duty in the context of a Private Equity backed Management Buy Out of a large corporate Group at a value of approximately £100 million. The shareholder Claimant maintained that the Group, when sold, had a true value of in excess of £200 million. Our work comprised an assessment of the value of the Group at various dates, its marketability, alternative sales mechanisms and whether the MBO process was run properly. At trial, the Claimant’s expert valued the Group at in the region of £173 million. My evidence was that the price paid was a full valuation. In the final Judgement, the Judge noted that “Mr Dodge had extensive experience of private equity backed transactions” and that “when it came to the granular points of disagreement it appeared to me that Mr Dodge also had the better of the argument.” The Judge concluded that “the valuation produced by Mr Dodge was more robust and was to be preferred” and found in favour of the Defendant in all respects.
Jon Dodge Partner Corporate Finance/Forensic Services Norwich +44 (0)7775 696 809 jon.dodge@frpadvisory.com
2022: My year in review 2022 has continued to be a busy year for our specialist matrimonial and business valuation team. As a Forensic Services Partner, I have been instructed on 29 business valuation cases during the year and have given evidence in Court on three occasions. As a Corporate Finance Partner, I have also acted as lead adviser on 13 M&A transactions. FRP’s Forensic Services valuation experts all either have direct experience of, or access to, a huge amount of up to date information relating to real world M&A transactions. This is a point of difference that provides additional depth and credibility to our valuation opinions.
2023: Predictions for the year ahead Jon is expecting company valuations to become even more complex in the next year or two.
Notable assignments
Acting as single joint expert on a matrimonial matter valuing ten companies operating in the hospitality sector Acting as single joint expert on a matrimonial matter valuing a group of companies trading in the retail footwear sector
Undertaking an expert reconstruction of the accounts of a property development business covering a period of 24 years Acting as single joint expert to consider the value, liquidity and income producing capacity of a large mineral extraction and waste management company in a matrimonial matter
“Company valuations have been complicated over the last two years as valuers have grappled with the impact of covid and in some industries a “post- COVID bounce”. As the impact of the current recession and world supply chain problems become more visible through
company results in 2023, updating opinions will be required in more cases. In new matters, this will be yet another variable for the company valuer to take account of. Great care will need to be exercised in all cases to take account of these various influences on company performance.”
frpadvisory.com
frpadvisory.com
14
15
Made with FlippingBook - professional solution for displaying marketing and sales documents online