Leviston v PQ Management Pty Ltd (No 3)

Leviston v PQ Management Pty Ltd (No 3) involved a dispute between Mr Andrew Troy Leviston and PQ Management Pty Ltd concerning the valuation of Mr Leviston's 30% shareholding in Treated Waste Agencies Pty Ltd. The case was heard by the Federal Court of Australia, where the primary issue was the correct method to apply in valuing Mr Leviston's shares, specifically whether the capitalisation of future maintainable earnings method was appropriately applied.

The court examined the valuation report prepared by Mr Ashby, which proposed a capitalisation multiple of 3.00. The defence challenged the methodology, arguing that the expert placed undue weight on certain data points and failed to correctly apply accounting standards. The court found that Mr Ashby's conclusions were well-founded, supported by his analysis of comparable businesses and transactions. The court rejected the argument that a different method, specifically a 2.2 times EBITDA calculation, should be applied, as it did not align with the appropriate factors considered by Mr Ashby.

Ultimately, the court upheld the valuation of $479,029 for Mr Leviston's 30% shareholding, with adjustments for specific deductions and interest. The court ordered that PQ Management Pty Ltd must pay this amount for the shares, with further calculations to be agreed upon by the parties or determined in a subsequent hearing. The court also reserved the matter of costs for later determination.