Convenient numbers don’t survive
When a dispute erupts, everyone reaches for a number that suits them. The exiting shareholder cherry-picks a competitor’s sale; the others point to a lean year; someone drags in the company accountant — hopelessly conflicted. None of it survives scrutiny. Courts and opposing experts tear apart valuations with partisan fingerprints or untraceable inputs, and a self-serving number only inflames the fight.
Independent and traceable — or worthless
A real valuation comes from a qualified expert with no stake in the outcome and no target number to hit. In court, an expert’s overriding duty is to the court — without genuine independence, the report may carry no weight at all. And every figure must be traceable: earnings reconciled to the accounts, multiples drawn from real market data, methodology justified, discounts backed by reasoning.
When both sides can see how the number was built, the fight becomes a discussion about testable assumptions. That’s how disputes settle.
Then the ATO shows up
Disputes end with shares changing hands — and the ATO expects related-party transfers at market value, backed by a properly documented expert valuation. CGT, small business concessions, Division 7A and buy-back treatment all turn on it. Get it wrong, and both sides face amended assessments, penalties and interest — years after the fight seemed over.
The cheapest thing you’ll buy in a dispute
An independent valuation isn’t a cost — it’s the exit ramp. It anchors negotiation, satisfies your shareholder agreement, and holds up in court. It’s the foundation of the resolution. Get it right first.
