What is a litigation valuation?
A litigation valuation is an independent business valuation prepared specifically for use in court proceedings. It must comply with court rules for expert evidence, clearly disclose methodology and assumptions, address alternative valuation positions, and be prepared by a qualified expert willing to give oral testimony and withstand cross-examination.
Court-Ready Business Valuations
Litigation valuations carry higher standards than commercial valuations. Courts require strict independence, full disclosure of methodology, consideration of alternative approaches, and an expert who can clearly explain and defend their conclusions under cross-examination.
Our Brisbane litigation valuers have extensive court experience across the Supreme Court, Federal Court, Family Court, and tribunals, delivering expert evidence that judges rely on to determine fair outcomes.
Types of Litigation Requiring Valuations
Business valuations are central to many forms of litigation.
Shareholder Oppression Claims
When minority shareholders allege oppressive conduct, valuations determine fair value for compulsory share buyouts under the Corporations Act. These valuations must consider whether oppressive conduct affected value and the appropriate date of valuation.
Commercial Disputes
Breach of contract, breach of fiduciary duty, and partnership disputes often require valuations to quantify losses or determine fair value of business interests. We quantify economic loss and present findings in formats courts accept.
Damages Quantification
Calculating damages requires valuing a business in both the 'but for' scenario (without the wrongful conduct) and the actual scenario, with the difference representing quantified loss. We model both scenarios with supporting evidence.
Family Law Property Settlements
Family Court valuations must comply with specific rules for single expert or shadow expert reports. We prepare valuations that address both parties' concerns and can withstand scrutiny from opposing counsel.
Expert Witness Standards
Our expert reports comply with the Uniform Civil Procedure Rules, Federal Court Practice Notes, and Family Law Rules for expert evidence. Every report includes an expert's declaration, statement of qualifications, clear methodology disclosure, consideration of alternative approaches, and compliance with the expert's overriding duty to the court.
We understand that our duty as experts is to the court, not to the party engaging us. This independence is fundamental to the credibility and weight of our evidence.
Cross-Examination Preparation
A valuation report is only as strong as the expert's ability to defend it under cross-examination. Our valuers have extensive experience giving oral evidence, explaining complex financial concepts clearly, responding to challenges from opposing experts, and maintaining composure and credibility under pressure.
We prepare thoroughly for hearings, anticipating likely challenges and ensuring every assumption and conclusion is supported by evidence and sound reasoning.
Key Benefits
How It Works
1Legal Briefing
Working with your legal team to understand the issues in dispute, relevant valuation dates, legal framework, and any directions from the court regarding expert evidence.
2Independent Analysis
Thorough valuation analysis maintaining strict independence, considering all relevant evidence and alternative approaches, with detailed documentation of reasoning.
3Expert Report
Comprehensive report complying with court rules, including expert declaration, methodology disclosure, assumptions, conclusions, and response to any opposing expert positions.
4Hearing Preparation
Pre-hearing conference with legal team, preparation for cross-examination, and attendance at concurrent expert evidence sessions (hot-tubbing) if directed by the court.
Common Questions About Business Valuation
People Also Ask
Litigation valuations typically cost $8,000-$25,000+ depending on complexity, number of entities, disputed issues, and hearing requirements. Court attendance is charged separately. These valuations cost more than commercial valuations due to the higher standards and additional work required.
A single joint expert can be appointed by agreement or court order, providing one independent valuation for both parties. This is common in Family Court matters and can reduce costs and simplify proceedings. However, each party retains the right to challenge the expert's conclusions.
Courts assess expert evidence on its merits — methodology soundness, reasonableness of assumptions, and the expert's credibility. A well-prepared, independent valuation by a qualified expert is rarely rejected outright, though the court may prefer aspects of one expert's approach over another.
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