Valuation of green energy project

Instructed as party expert by the defendant in litigation proceedings. A joint venture company had been created by a UK company and a European company for the purposes of a green energy project. One party was due to provide the technical expertise and operational support (the defendant), the other was due to provide funding (the claimant).

Following a breakdown of the relationship between the parties, ongoing funding was ceased by the claimant and a demand was made for repayment of the initial funds. The dispute surrounded the funds introduced, how these funds were used by the joint venture and defendant, and whether these represented equity or debt investment.

The instruction to the expert witness was to undertake a valuation of the joint venture company, as well as an analysis of the bank accounts of the joint venture company to determine the total funds introduced to the joint venture company by the claimant. Due to the nature of the joint venture, a discounted cash flow methodology was employed.

Following the provision of an expert witness report giving a valuation of the joint venture company and demonstrating the total amounts introduced by the claimant, the parties entered into a settlement agreement.