Did you know that we can also help with divorce or separation mediation?
Where there is a business jointly owned by the parties in a divorce or separation, the division of assets can often become contentious.
The separating couple are faced with a number of potential scenarios:
1. To continue with the working relationship and carry on with the same structure.
This will often be the least practical as a breakdown in the emotional relationship may also mean it is completely unfeasible for the two parties to keep working together and making strategic decisions that are objective.
2. One party exits the business (e.g. through the purchase of the other party’s shares or by remunerating them for their share in the assets and goodwill in the business or their loss of participation in the business).
There will often be a dispute over the settlement terms when one party is walking away. The matter of an appropriate value of one party’s stake in the business is also complex. There can often be further complications in determining value where each party brings a diƯerent level of involvement or skill to the business.
3. The business is sold and the proceeds are divided “accordingly.”
There may again be disputes over the valuation and terms of the business sale which both parties cannot agree on. The split of proceeds may also not be as simple as a £ per share basis (if for a limited company held by shares). What is an acceptable price for one party may not be an acceptable price for the other.
How Logix can help
We understand the emotions attached to a matter of separation or divorce. Anger, bitterness and a thirst for revenge can often lead to one or both parties seeking an unrealistic settlement.
We can provide expert and impartial advice over business valuations, free from any emotion, which may assist in the mediation process between the separating couple. We can either be engaged by a single party or both parties to present our opinion on a fair market value for the business.
We can also provide full valuation reports should mediation fail and the matter moves to legal proceedings.
Finally, if a buy-out or external sale option is agreed upon, we can also provide advisory services to see a transaction through to completion.