BTG provides shadow expert analysis in £30 million divorce valuation dispute

The Challenge

In complex divorce proceedings, the wife held shares in an online accommodation letting company requiring valuation for financial settlement purposes. The company's accountants provided a valuation of the business at £30 million, then applied a minority discount to calculate the wife's individual shareholding value. The husband needed expert guidance on whether to accept this valuation or apply for Single Joint Expert appointment.

Our Approach

BTG was instructed as shadow expert to scrutinise the accountants' work. Our comprehensive review produced independent valuations ranging from £11 million to £23 million, confirming the overall company valuation was reasonable. However, we identified that the minority discount applied appeared excessive and unjustifiably high.

The Outcome

We advised accepting the company valuation as challenging it would likely produce higher figures unfavourable to the husband's position. However, we recommended challenging the minority discount in isolation, lowering the wife's shareholding value without reopening the entire valuation question. This strategic approach protected financial interests whilst avoiding costly expert valuation proceedings.