Valuations, of either private limited company shares or partnership interests are used for various reasons;
Sale of a company or business
Where a company is being wholly acquired by a third party, typically being “bought out”.
An exiting shareholder or partner
Ideally the way such a valuation is prepared will dictated by a shareholders or partnership agreement, such an agreement will specify the procedure to be followed when one shareholder or partner wants to sell their stake in the company. This will ordinarily include how the company is valued, which may be a specific way or formula depending on the nature of the business. It would also dictate the terms on payment is made or maybe restrictions on who the shares may be sold to.
Where one party owns a holding in a private limited company or a share in a partnership, an independent expert valuation is required to assist the legal teams in building a case or proposal. A valuation may also be ordered by the court to determine financial status.
Personal Injury Claims
Where for example an owner/manager of a business is injured through an accident, he or she may claim against an insurance policy or maybe a third party who is liable for causing the accident. A valuation maybe required in order to substantiate a loss of earnings claim.
As well as producing a valuation we have previously reconstructed financial records to facilitate insurance claims.
Share valuations are often south by individuals transferring shares which may generate tax liabilities or in connection with trusts or probate. There may be a need for interaction with HMRC, negotiating and agreeing values.
Valuations can be complicated and the procedure is not an exact science, often requiring expert judgement based on experience, which we are well placed to offer. Our services are frequently used by both individuals and solicitors for the applications above.
Contact: Phil Nicholson