How a Business Valuation Expert Witness Can Assist in a Valuation Dispute

A dispute over the value of a business or shareholding can involve questions that require specialist financial and valuation analysis. Parties may disagree about the appropriate valuation approach, the financial information that should be relied upon, the assumptions used, or the value attributable to a particular interest.

Where expert evidence is permitted and reasonably required, a business valuation expert witness may assist by providing an independent opinion on valuation matters within their expertise.

The expert's role is not to advocate for the party who instructs them. Under CPR Part 35, an expert's overriding duty is to help the court on matters within their expertise, and that duty takes precedence over any obligation to the person who instructed or pays the expert.

This article looks at how a business valuation expert witness may assist in a valuation dispute and the areas of analysis that can arise.

This article provides general information about business valuation and expert evidence. It is not intended to constitute legal, financial or professional advice. The application of the law and procedural rules depends on the circumstances of each case, and readers should obtain appropriate professional advice for their particular situation. Last reviewed: September 2026.

A business valuation dispute arises where the parties disagree about the value of a business, company or shareholding in the context of a legal or commercial matter.

The issue may concern the value of the whole business or a particular ownership interest. Valuation questions can arise in circumstances including: - Shareholder disputes - Partnership and ownership disputes - Disputes arising from the sale or acquisition of a business - Contractual disputes involving valuation provisions - Disputes concerning the transfer or buy-out of shares - Certain insolvency-related matters - Other proceedings where the value of a business is relevant

For example, a dispute may centre on the value of a minority shareholding, the value of a business following a transaction, or the appropriate calculation of a buy-out price.

The precise valuation question will depend on the facts of the dispute, the relevant agreements or legal framework, and any directions given by the court.

A valuation expert does not determine the legal issues in the case. Where expert evidence is appropriate, their role is to provide specialist opinion on the financial and valuation matters within their expertise.

For an overview of the type of work involved in contested valuations, visit our business valuation disputes service.

Not every disagreement about the value of a business requires expert evidence.

CPR Part 35 provides that expert evidence should be restricted to evidence reasonably required to resolve the proceedings. The court also controls whether expert evidence may be relied upon.

Where the value of a business or shareholding is a material issue and specialist valuation knowledge is required, expert evidence may be relevant.

For example, the parties may disagree about: - Maintainable earnings - The treatment of unusual or non-recurring items - Management forecasts - The appropriate valuation date - Comparable companies or transactions - Debt, cash or working capital - Assumptions used in an income-based valuation - The value of particular assets or liabilities - The value attributable to a particular shareholding

Whether expert evidence is appropriate will depend on the circumstances of the individual proceedings and the court's directions.

A business valuation expert will generally begin by identifying the valuation question they have been instructed to address.

The expert may then review relevant financial and commercial information, consider the applicable basis and assumptions, undertake valuation analysis and explain the reasoning behind their opinion.

The precise work will vary from case to case, but may include several stages.

The financial records of a business form an important part of many valuation exercises.

Depending on the dispute, an expert may consider: - Statutory accounts - Management accounts - Budgets and forecasts - Cash-flow information - Details of borrowings and other liabilities - Business plans - Shareholder or partnership agreements - Transaction documents - Information concerning ownership and share rights - Information about significant customers or suppliers - Relevant market or industry information

The information required will depend on the valuation question.

The purpose of the review is not simply to collect historical figures. The expert may also need to understand the underlying business, its financial performance and the circumstances relevant to the valuation.

Different valuation approaches may be relevant depending on the nature of the business and the purpose of the valuation.

Broadly, valuation approaches can include: - Income-based approaches, which consider the economic benefits expected to be generated by the business - Market-based approaches, which may involve comparisons with relevant companies or transactions - Asset-based approaches, which consider the value of the underlying assets and liabilities

An expert may consider one or more approaches and explain why a particular approach, or combination of approaches, is appropriate in the circumstances.

The appropriate methodology should not be assumed simply because a particular method is commonly used. The expert needs to consider the valuation question, available evidence and relevant circumstances of the case.

Valuation conclusions can be affected by assumptions about the future or by judgements about historical financial performance.

For example, assumptions concerning revenue growth, profit margins, capital expenditure or working capital requirements may affect an income-based valuation.

An expert may therefore examine whether assumptions used in financial forecasts or other valuation inputs are supported by the available evidence.

This may involve comparing forecasts with historical performance, considering contemporaneous business information and reviewing relevant market or industry evidence.

The expert should not simply adopt assumptions because they produce a preferred valuation outcome. Expert evidence is expected to remain independent and objective.

The valuation date can be an important issue in a business valuation dispute.

A company's financial position and prospects may change significantly over time. Information available after the relevant valuation date may therefore need to be considered carefully rather than automatically treated as if it had been known at that date.

The appropriate treatment of subsequent information will depend on the circumstances and the basis on which the valuation is being undertaken.

For this reason, the relevant valuation date and the assumptions or factual matters the expert is required to consider should be clear from the instructions and the applicable legal framework.

In some disputes, each party may rely on its own valuation evidence. The experts may reach different conclusions about the appropriate methodology, assumptions or valuation inputs.

Differences may arise from matters such as: - Different interpretations of financial information - Different forecasts or assumptions - Different valuation methodologies - Different comparable companies or transactions - Different treatment of particular assets or liabilities - Different views about the appropriate valuation inputs

Where appropriate, an expert may be asked to consider another expert's analysis and explain areas of agreement and disagreement.

CPR Part 35 allows the court to direct experts to discuss the issues in dispute. Where appropriate, the experts may be required to reach an agreed opinion on particular issues and identify the matters on which they remain in disagreement.

The purpose of this process is not necessarily to make the experts reach the same conclusion. It can help identify the issues that genuinely remain in dispute.

An expert report should explain the basis for the expert's opinion rather than simply state a final valuation figure.

CPR Part 35 and Practice Direction 35 set requirements concerning expert reports. These include matters such as the expert's duty to the court, the substance of material instructions and the basis of the expert's opinion.

Depending on the case, the report may explain: - The question the expert was asked to address - The information considered - Relevant assumptions - The valuation methodology - Calculations and supporting analysis - Significant areas of judgement - Limitations in the available information - The expert's resulting opinion

This can help the court understand how the valuation conclusion has been reached and where the principal areas of disagreement lie.

For broader information about expert evidence and the work an accounting expert may undertake, visit our expert witness evidence service.

There is no universal document list for every business valuation dispute.

The information required will depend on the business, the valuation question and the issues in dispute. It may include: - Historic financial statements - Management accounts - Budgets and forecasts - Cash-flow forecasts - Details of debt and other liabilities - Shareholder or partnership agreements - Acquisition or transaction documents - Information about ownership interests - Details of significant business assets - Relevant correspondence - Industry or market information

If material information is unavailable, this can affect the extent to which an expert is able to reach a definite opinion.

Practice Direction 35 provides that an expert should make clear when they cannot give a definite opinion, including where there is insufficient information.

This is one reason why identifying the relevant financial records and evidence at an early stage can be important when defining the scope of a valuation instruction.

The scope of an expert's work should be sufficiently clear for the expert to understand the question they are being asked to address.

Instructions may need to identify matters such as: - The business or shareholding to be valued - The relevant valuation date - The valuation question - Relevant factual assumptions - Documents or evidence to be considered - The specific issues on which expert opinion is required

The instructions should not seek to dictate the expert's conclusion.

Clear instructions can instead help establish the scope of the valuation exercise and distinguish between matters of fact, legal issues and questions requiring specialist financial opinion.

A business valuation expert witness is not an advocate for the party who instructs them.

CPR Part 35 provides that an expert's duty is to help the court on matters within their expertise and that this duty overrides any obligation to the person from whom they have received instructions or by whom they are paid.

Practice Direction 35 also states that expert evidence should be independent, objective and unbiased.

This means an expert may identify weaknesses or uncertainties in the position of the party who instructed them. Their responsibility is to provide their independent opinion on the matters within their expertise rather than to support a particular outcome.

In some proceedings, the court may direct the parties to use a single joint expert on a particular issue.

CPR Part 35 provides for the court to direct that evidence on a particular issue be given by a single joint expert where appropriate.

A single joint expert is therefore not automatically required in every valuation dispute. Whether one is appropriate is a matter for the court in the circumstances of the case.

Where a single joint expert is appointed, the applicable procedural rules also govern matters such as instructions and fees.

Where expert valuation evidence is appropriate, a business valuation expert may assist by providing specialist financial analysis of the issues in dispute.

Depending on the scope of the instruction, this may help the court understand: - The financial performance of the business - The valuation methodology used - The significance of particular assumptions - The effect of different valuation inputs - Areas of agreement and disagreement between experts - Limitations affecting the valuation analysis

The expert does not decide the legal dispute or determine what remedy should be awarded. Those are matters for the court.

The expert's function is to provide an independent opinion on the financial and valuation matters falling within their expertise.

Before an expert is instructed, it may be useful to establish precisely what valuation question needs to be answered.

Depending on the case, solicitors may wish to consider: - What is the specific valuation issue? - What business, company or shareholding is being valued? - What is the relevant valuation date? - What basis of valuation applies? - What financial information is available? - Are there material gaps in the evidence? - Is expert evidence reasonably required to resolve the issue? - What questions should the expert be asked to address? - What directions have been given concerning expert evidence?

It is also important to distinguish between questions of law, factual evidence and matters requiring specialist valuation opinion.

Where a dispute also involves a financial loss calculation, the valuation exercise may overlap with issues of quantum. Our damages quantification service covers the separate analysis of financial loss where that is relevant to a matter.

A business valuation dispute may involve more than disagreement over a final figure. Financial information, assumptions, valuation methodology, the valuation date and the circumstances of the business can all affect the analysis.

Where expert evidence is appropriate, a business valuation expert witness may assist by reviewing financial information, assessing valuation assumptions, considering appropriate methodologies, analysing competing evidence and explaining the reasoning behind their opinion.

The expert's role remains separate from that of the legal representatives. Under CPR Part 35, the expert's overriding duty is to assist the court, and the evidence should be independent and objective.

The precise scope of valuation evidence will depend on the facts of the dispute, the issues the court needs to determine and any procedural directions that apply.

For solicitors dealing with a valuation dispute, defining the valuation question, relevant evidence and scope of expert opinion clearly can help keep the expert analysis focused on the issues that the proceedings require.

What is a business valuation expert witness? A business valuation expert witness is a suitably qualified professional who provides specialist opinion on the value of a business or shareholding for legal proceedings, where expert evidence is permitted and reasonably required.

When might a business valuation expert witness be needed? An expert may be relevant where the value of a business or shareholding is a material issue and specialist valuation knowledge is required. Under CPR Part 35, expert evidence is restricted to evidence reasonably required to resolve the proceedings and is subject to the court's control.

What valuation methods might an expert consider? Depending on the circumstances, an expert may consider income-based, market-based or asset-based approaches. The appropriate approach depends on the valuation question, the business, the available evidence and the circumstances of the case.

Can a valuation expert decide which party is right? No. An expert provides an independent opinion on matters within their expertise. The expert does not determine the legal issues or decide the outcome of the proceedings.

Can a valuation expert comment on another expert's valuation? Subject to the scope of the instruction and any directions from the court, an expert may be required to consider another expert's evidence and explain areas of agreement or disagreement. The court may also direct experts to discuss issues in dispute.

What happens if the financial information is incomplete? An expert should identify material limitations in the available information. Where insufficient information prevents the expert from reaching a definite opinion, that limitation should be made clear.

Does every valuation dispute require expert evidence? No. Expert evidence should be restricted to evidence reasonably required to resolve the proceedings, and the court controls whether expert evidence may be relied upon.