E&Y counts Macca fortune
Big Four firm hired in high-profile divorce of former Beatle Sir Paul McCartney and ex-wife Heather Mills
Sir Paul McCartney instructed Ernst & Young to value his business assets
as part of his divorce proceedings, it has emerged.
The Big Four firm put a value of £400m on his fortune, a figure accepted by
the court over valuations carried out by ex-wife Heather Mills’ accountants.
E&Y director, Alan Wallis performed the valuation which showed the
Beatle’s business interests as at 11 June 2002 and 28 April 2006 at £242,900,000
and £240,900,000 respectively.
Mills claimed for £125m following her short four-year marriage but a judge
awarded her only £24.3 million from the star’s wealth.
According to court papers, Wallis valued McCartney’s property holdings at
£33,979,000, with £15,159,000 in bank accounts in the UK and USA. His
investments were valued at £34,319,000. He was owed a total of £3,687,000. He
held £6000 in cash. Paintings which he had painted, works of art, musical
instruments, jewellery, furniture, house contents, motor vehicles and horses
were valued professionally at £32,269,000.
He disclosed tax liabilities of £9,615,000. He put in as the value of his
business interests Mr Wallis’ valuation of £240,920,000. His pension assets were
valued at £36,288,000. Accordingly he disclosed total net assets of
£387,012,000. He disclosed his total net income for the next 12 months at
£5,357,000.
Mills’ forensic accountants Lee and Allen made a preliminary report of the
her former husband’s business interests and also requested further information
so that they could check, comment on, differ from, or agree with Ernst and
Young’s valuations.
But a senior district judge disallowed several of the requests.
In addition, the court rejected the opinion on multiples used in valuations
by Lee and Allen.
Mr Justice Bennett said: ‘Having listened to both accountants giving evidence
I unhesitatingly accept that of Mr Wallis. I am grateful to Mr Allen for his
assistance but on this issue Mr Wallis is in a different league of expertise to
Mr Allen. Mr Wallis told me he has 25 years experience in musical and media
work. In stark contrast Mr Allen, a forensic accountant mainly concerned with
claims for damages and with share valuations, candidly admitted that he had
never valued a catalogue. ‘
Read
the McCartney-Mills judgment in full here