What Is a Business Valuation Expert Witness?
A business valuation expert witness is a qualified financial professional who gives independent, court-admissible opinions on the value of a company or shareholding in UK civil and family proceedings, with a primary duty to the court under CPR Part 35 or FPR Part 25, not to the instructing solicitor.
Definition
A business valuation expert witness is typically a chartered accountant, chartered financial analyst, or certified valuation analyst retained to provide an independent opinion on business value. Unlike a commercial valuer advising on a transaction, an expert witness owes their primary duty to the court, not to the instructing party - whether appointed as a single joint expert or by one party alone.
What They Do
- Analyse financial statements, management accounts, and projections
- Apply appropriate valuation methodology (DCF, maintainable earnings, NAV)
- Prepare a written expert report compliant with CPR Part 35 (civil) or FPR Part 25 (family)
- Attend court or arbitration hearings to give oral evidence
- Participate in without prejudice joint expert meetings
- Prepare joint statements identifying agreed and disputed matters
- Rebut opposing expert valuations
Two Legal Frameworks - CPR Part 35 vs FPR Part 25
| Topic | CPR Part 35 (civil) | FPR Part 25 (family) |
|---|---|---|
| Courts | High Court, County Court, Commercial & Chancery | Family Court, Family Division of the High Court |
| Typical cases | S994, M&A, insolvency, partnership, IP, negligence | Financial remedy, Schedule 1, business as matrimonial asset |
| Court permission | Usually not required before instructing (case management) | Often required before expert fees incurred |
| Expert duty | Primary duty to the court (Ikarian Reefer) | Same overriding duty to the court |
| Joint experts | CPR 35.7 Single Joint Expert | FPR 25.11 Single Joint Expert |
Single Joint Expert (SJE) vs Party-Appointed Expert (PAE)
SJE: Both parties jointly instruct one expert. Common in lower-value cases and where the court exercises case management powers.
PAE: Each party instructs their own expert. More common in high-value disputes. Requires joint meetings under CPR PD35 and FPR PD25A. Read our SJE guide.
The Ikarian Reefer Duties
A business valuation expert witness owes their primary duty to the court, not the instructing solicitor or client - established in The Ikarian Reefer [1993] and codified in CPR Part 35 and FPR Part 25. See our qualifications page.
When Do You Need a Business Valuation Expert Witness?
- A business is an asset in divorce financial remedy proceedings
- Shareholders dispute the value of their shares (S994 petition)
- A partnership is being dissolved and assets are in dispute
- M&A warranty or completion accounts disputes
- Insolvency where business value is contested
- HMRC or First-tier Tribunal share valuation challenges
- Professional negligence against an accountant or valuer
- IP, goodwill, or compulsory purchase compensation
Next step
Ready to instruct a business valuation expert witness?
Submit your case details and we will match you with a qualified expert for English and Welsh proceedings under CPR Part 35 or FPR Part 25. Response within one business day.
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