When do you need a share valuation?
Do you know what your shares are actually worth? It’s a question many business owners don’t think about until they’re preparing to sell, but there are plenty of other situations where knowing their value is just as important. From business restructures and tax planning to shareholder disputes and employee share schemes, an accurate share valuation can help you make informed decisions and avoid costly complications. In this article, Dan Rose explores when you might need a share valuation and why getting it right matters.
Share valuations aren’t just for when you’re selling a business
There are many situations where you may need to establish the value of shares in a private company, from group restructures and tax planning to shareholder disputes, matrimonial matters and employee share options.
At Gravita, our specialist share valuation team helps shareholders, business owners and their advisers understand what shares are worth, how that value has been reached and how it can be used to support important decisions.
When might you need a share valuation?
Group restructures and tax
Transferring shares as part of a group reorganisation? We can provide an independent valuation to support the restructuring and associated tax considerations.
Shareholder disputes
When shareholders disagree, establishing the value of their respective interests can be critical. We provide independent valuations to help support negotiations, settlements and dispute resolution.
Matrimonial matters
Shares in a private company can represent a significant asset. We can value those interests to support matrimonial proceedings and provide an independent assessment for the parties and their advisers.
Share options
Issuing shares or options to employees or other stakeholders can create tax and accounting considerations. We can provide valuations to support the issue and the relevant reporting requirements.
IP and software
Sometimes it’s not the shares themselves that are changing hands. We can value underlying assets such as intellectual property and software where they are being transferred, sold or reorganised, or where a valuation is required for accounting or tax purposes.
Looking ahead
You may simply want to understand the value of your shareholding today, particularly if you’re considering an eventual sale, succession or investment. A valuation can provide a useful benchmark and help you understand what is driving the value of your shares.
Why Gravita?
The value of shares can depend on the size and nature of the interest, the rights attached to the shares, the company’s financial performance and prospects, and the specific purpose of the valuation.
Our valuation specialists combine technical valuation expertise with the wider tax, audit and advisory capabilities of a top 35 accountancy firm. That means we can look at the bigger picture and provide advice that works alongside your wider objectives.
Need to understand what your shares are worth? Talk to Gravita’s share valuation team.
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