In the matter of Natural Raw C Pty Ltd (No 2)

Natural Raw C Pty Ltd (No 2) involved a dispute over the valuation of shares in a company, with the court required to determine the price to be paid for the equity of the company. The case arose from an application under the Corporations Act 2001, where the court was asked to fix the price of shares in the absence of agreement between the parties. The central issue was how to reconcile conflicting expert opinions on the valuation methodology, the applicable earnings multiple, and the overall valuation of the company. The court had to decide which expert's opinion to follow and, consequently, what price to fix for the shares.

The court examined the differing methodologies employed by the experts, their assumptions, and the reasoning behind their conclusions. It noted that while the experts agreed on some basic principles, they diverged significantly on critical aspects such as the appropriate valuation multiple and the valuation method. The court considered the thoroughness of each expert's report, the consistency with established valuation principles, and the factual basis for their conclusions. Ultimately, the court found one expert's valuation to be more reliable and aligned with the principles of fairness and equity, leading to the adoption of that expert's valuation for determining the price to be paid for the shares.

The court fixed the price of the shares in accordance with the valuation provided by the preferred expert. This decision was based on the comprehensive analysis and rationale provided by the expert, which the court found to be well-supported by the evidence and consistent with applicable legal standards. The court's determination brought closure to the valuation dispute, providing a definitive price for the shares in question.