Real case of a valuation fraud from an expert. Some advice needed.

Hi guys. This is a real case and there is a trial going on (in eastern Europe ), I would like some hints from you and maybe even some help based on International valuation standards.
There are 2 companies:
Company A has 21 mil cash in bank, that's all the assets.
Company B has a hotel, a pool, some other PP&E and cash, very very low debt.
Majority shareholders wanted for companies to go private. Some minority shareholders didn't want so they decided to get out. Now a valuation expert was employed to repay the minority shareholders whatever their equity was worth (that is a requirement from the law).
Now the expert valued the companies using DCF and because both of them have low or almost none activity their value that was calculated was like half of their net assets.
Expert also said that he used 1/PER as a discount rate (according to him this is used for publicly traded companies, whatever).
Also he said that there are some closed end funds here in eastern europe, which are traded and have a market cap lower than their net assets.
What counter arguments can I use to show that he is full of it and his valuation method are not objective?
Or maybe I am wrong and let me know about that too.
I will appreciate any of your inputs, thanks.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • Lazard Freres 06 98.9%
  • JPMorgan Chase 09 98.3%
  • Morgan Stanley 05 97.7%
  • Moelis & Company 01 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (94) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (206) $159
  • Intern/Summer Analyst (151) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
kanon's picture
kanon
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”