This case is a re-hearing on damages following a Divisional Court decision that remitted the matter back to the trial judge for a proper valuation of the plaintiff's 25% share interest in the defendant company, My Insurance Brokerage (MIB), after a breach of contract.
The court assessed conflicting expert evidence on share valuation, utilizing both income/cash flow and market multiple methods.
The plaintiff's expert's opinion was approached with caution due to an undisclosed professional relationship and unrealistic assumptions regarding minority discount and the impact of the 2008-2009 financial crisis.
While generally preferring the defendant's expert's methodology, the court found an error in valuing MIB as a start-up and ordered an upward adjustment to the cash flow multiple.
The final fair market value of the shares was to be determined as the midpoint between the recalculated income/cash flow valuation and the market method valuation.