How to Draft a Letter of Instruction to a Business Valuation Expert Witness

The letter of instruction defines the expert's mandate, questions to answer, documents provided, timetable, and fee basis. It forms part of the expert's report appendix and may be scrutinised by the court and opposing party.

In joint expert cases, both parties should sign a joint letter to avoid scope disputes.

Include: parties and proceedings reference; expert's duty to the court under CPR Part 35 or FPR Part 25; background facts (neutral, not argumentative); valuation date and share class; specific questions; list of documents; whether SJE or party expert; timetable for report and meetings; fee arrangement and cap if agreed.

Good questions are specific: What was the fair value of X ordinary shares on [date]? What methodology do you adopt and why? What is personal versus business goodwill? What normalisation adjustments do you apply? Avoid asking the expert to opine on legal conclusions.

Provide three years audited accounts, management accounts, forecasts, shareholders' agreement, board minutes, prior valuations, and pleadings where appropriate. In family cases include Form E and replies. Flag incomplete disclosure so the expert can note limitations in the report.

See our how to instruct page for the full seven-step process from identifying legal context to document production.