BREXIT & COVID A LA MOSTYN J
The double whammy of these two horrors has been addressed by Mostyn J in the first reported case on their impact on a company’s value in OG v AG [2020] EWFC 52. In focus was a company providing ducting to a wide range of customers in construction, transportation and other industries. A significant proportion of the trading business was with the EU and if there was no deal, the free trade tariff on which the company operated would end. The company had already experienced a significant decrease in demand. The single joint company valuation expert advised that a Brexit/Covid-19 discount was appropriate but declined to hazard a figure. The wife argued for 10% to be applied not only to the trading element of the valuation but the surplus assets of cash and quoted investments as well. The judge applied 10% on the trading element only. He held that there was
