Shareholder disputes
An independent figure when shareholders disagree.
A shareholder dispute valuation from The Business Valuers is an independent written valuation of the shares in question, fixed fee from £895 and delivered in 3 working days from receipt of the information we need. It sets out the value of the whole company and the shareholding, the basis used, and the evidence, so both sides can see how the figure was reached.
James Nelson
Founder & M&A Valuation Director, The Business Valuers
17 years in UK business brokerage and valuation. 1,000+ SME valuations completed. Former Head of Corporate Sales at Christie & Co.
Shareholder dispute valuations from £895. We agree the fixed fee before starting; formal expert-witness work is scoped separately.
Independent.We don't sell businesses. No success fee.
- 1,000+ UK business valuations
- 17 years of brokering & valuing experience
- Fixed fee from £895 — no hourly billing
- Report delivered in 3 working days
When you need this.
- —One shareholder wants to buy and another wants to sell, and the price is where talks have stalled.
- —A shareholders' agreement sets a valuation mechanism that needs an independent figure to apply it.
- —A director or shareholder is leaving and the exit value needs to be settled.
- —A minority shareholder believes they are being treated unfairly and needs an independent figure to support a claim or a negotiation.
- —Solicitors on either side want a neutral valuation to support a settlement rather than litigate the figure.
How we value it.
Every report triangulates a normalised-EBITDA earnings multiple as the primary method, a net asset valuation, and a discounted cash flow cross-check, benchmarked against comparable transactions. Normalising earnings matters most in disputes: owner remuneration, related-party costs and one-off items are adjusted so the figure reflects the business's real earning power rather than how it happens to be run.
For a shareholding, we value the whole company first and then consider the shareholding in question separately. Whether a minority discount applies, and its size, depends on the size of the stake, what control it carries under the articles and shareholders' agreement, and the purpose the valuation is being used for. We explain our reasoning in the report rather than applying a blanket discount.
We do not sell businesses and do not prepare accounts, and the fee is paid before work starts. Every document and piece of correspondence we rely on is listed in a report appendix, so the basis of the figure is transparent to both sides.
Illustrative example
Two shareholders, one disputed exit.
Two shareholders in an engineering services company, each holding 50%, disagree on the price for one to buy out the other. The business has normalised EBITDA of £400,000. Applying a benchmarked multiple of 4.5x gives an enterprise value of £1.8m. After adjusting for net debt of £150,000, the equity value is £1.65m, meaning each 50% holding is worth £825,000 before any discount for the specific exit mechanism in the shareholders' agreement. The report sets out the earnings normalisation, the multiple used and the comparable evidence, so both shareholders' solicitors can test the figure.
What you'll need to provide.
- —Statutory accounts for the last three years.
- —The most recent management accounts.
- —The articles of association and any shareholders' agreement.
- —A short note on the shareholding in dispute and the point of disagreement.
If anything is missing, we will tell you what matters and what doesn't.
What we don't do.
- —We are not tax advisers. The report does not give tax advice on how any buy-out or settlement is structured; that is for your accountant or tax adviser.
- —We are not RICS-regulated. Where the company owns freehold property, we use an agreed property value, or value the business debt free, cash free, excluding the freehold.
- —We do not currently attend court to give oral evidence. Where a contested petition needs a court-directed expert for cross-examination, we will tell you plainly at the quote stage.
- —We don't sell businesses and have no stake in the outcome of the dispute.
This is for you if…
- —Shareholders are negotiating a buy-out and can't agree the price.
- —You need a neutral figure to break a deadlock.
- —A solicitor has asked for an independent valuation to support a settlement.
From the book
Parting Shares
Written by James Nelson, the valuer behind this report.
Free checklist: shareholder exit valuation
The one-page companion to Parting Shares, James Nelson's plain-English guide to valuing shares when business owners part company. It covers the documents a valuer needs, the questions to ask before you instruct anyone, and the points to raise with your solicitor. Free to download, no sign-up.
Download the checklist (PDF)Frequently asked.
What is a shareholder dispute valuation?
It is an independent written valuation of the shares in question, prepared when shareholders disagree about what the company, or a particular shareholding, is worth. It sets out the value of the whole company, the value of the specific shareholding, the method used and the evidence behind it, so both sides can see how the figure was reached rather than argue about it.
How much does a shareholder dispute valuation cost?
Fixed fee from £895, agreed with you before any work starts. Complex or multi-entity matters are quoted individually once we understand the shareholding and group structure.
How long does it take?
A written report in 3 working days from receipt of the information we need, usually the statutory accounts, recent management accounts and the shareholders' agreement or articles.
Will a minority discount be applied?
It depends on what is being valued and why. A minority shareholding is often worth less per share than a pro-rata slice of the whole company, because it carries no control. Whether a discount applies, and how large it is, depends on the articles, any shareholders' agreement, and the purpose of the valuation. We set out our reasoning in the report rather than applying a discount as a default.
Can both shareholders use the same report?
Yes. We act independently of both parties and produce one report that sets out the basis and evidence clearly, so it can be used as the shared starting point for negotiation rather than each side commissioning a competing figure.
Do you act as an expert witness in unfair prejudice petitions?
Where a contested petition needs a court-directed expert who may be cross-examined, that is a distinct role. Tell us where the matter stands and we will say plainly at the quote stage whether that applies and what we can offer.
What don't you do?
We are not tax advisers, so the report does not cover the tax treatment of any buy-out or settlement, and we are not RICS-regulated, so where the company owns freehold property we use an agreed value or value the business debt free, cash free, excluding the freehold. We do not currently attend court to give oral evidence.
Request an independent share valuation.
A neutral, fully evidenced figure from £895, with a fixed fee agreed up front.
Independent.We don't sell businesses. No success fee.
- 1,000+ UK business valuations
- 17 years of brokering & valuing experience
- Fixed fee from £895 — no hourly billing
- Report delivered in 3 working days