Crowe Horwath directors have backed a takeover offer from Financial Index Wealth Accountants (Findex), while an independent expert has valued the financial services company’s shares at 43-54 cents.

Findex Australia has offered 50 cents a share, which Grant Samuel deems a fair offer.

Crowe Horwath shares have not traded above this figure since the announcement of the takeover bid.

Before the announcement, they were trading at 38.5 cents, giving a 29.9% premium.

Grant Samuel’s expert report says Crowe Horwath’s value is “subject to considerable uncertainty”.

“Crowe Horwath’s historical financial performance has been disappointing, with underlying earnings falling steadily during the past five years,” the report says. “Demand for business advisory services from Crowe Horwath’s client base in the small to medium business segment remains subdued.”

The report says Crowe Horwath has grown through debt-funded acquisitions of accounting and financial services businesses, but earnings from these businesses have eroded while the debt remains.

“Given its modest earnings and the terms of its debt facility, Crowe Horwath has little financial flexibility and only limited capacity to respond to any further deterioration in trading performance.”

Grant Samuel says for the Findex offer to be unreasonable, Crowe Horwath would need to significantly improve its trading performance.

Crowe Horwath shareholders will vote on the offer on December 15 in Melbourne. If they approve the deal, Crowe Horwath shares will cease trading on December 18.

The takeover is scheduled for January 6.