Resolving a Shareholder Dispute in a Professional Services Firm
When a shareholder dispute threatened the stability of a multi-partner professional services firm, Capten Valuations provided an independent, defensible valuation that helped all parties reach a fair settlement quickly and efficiently.
The Challenge
A multi-partner professional services firm faced a contentious shareholder dispute following the unexpected departure of a founding partner. Disagreement arose over the firm’s valuation, appropriate EBITDA adjustments, and the treatment of partner compensation. Each party had differing views on fair value, creating the risk of prolonged litigation, reputational damage, and operational disruption.
Our Approach
Capten Valuations was engaged to deliver an independent, court-defensible valuation. Our team:
- Conducted a full financial normalization, identifying and adjusting non-recurring expenses, excess owner compensation, and discretionary spending.
- Performed an in-depth industry benchmarking analysis to validate margins, growth assumptions, and valuation multiples.
- Applied multiple valuation methodologies, including income and market approaches.
- Prepared a comprehensive valuation report with clear documentation of assumptions and sensitivity analyses.
- Facilitated structured discussions between shareholders, translating technical findings into clear recommendations.
The Outcome
The valuation report provided a neutral, defensible benchmark, enabling:
- A negotiated settlement without litigation.
- A smooth shareholder buyout completed within 60 days.
- Preservation of business continuity and client relationships.
- Reduced legal and advisory costs for all parties involved.
Industry: Professional Services
Engagement Type: Shareholder Dispute Valuation
Client Type: Multi-partner advisory firm