In reviewing the case of Munja Bakehouse Pty Ltd [2024] NSWSC 6, two divergent business valuation opinions were brought before the court, each reflecting different approaches to the valuation of Munja’s shares. The court had the challenging task of determining which valuation provided the most reliable reflection of the business’s worth. On one side was Mr. G, representing the defendants, and on the other, Mr. S, acting for the plaintiffs. While both experts employed EBITDA as a primary metric, the court ultimately favoured Mr. G’s valuation due to its stronger alignment with the specific circumstances of the business.

Read More

As experienced professionals in family law, you understand the crucial role that business valuations play in resolving complex financial matters during divorce proceedings. The precision and reliability of these valuations are essential, yet they often present challenges that require not only legal acumen but also a deep understanding of valuation practices. Let’s delve into three vital considerations that you, as solicitors, must keep in mind when reading a business valuation report.

Read More