Build a clearer starting point for shareholder valuation discussions
Disagreements between shareholders can arise when an owner wants to exit, a relationship breaks down or parties disagree about the value of their interests. A structured understanding of the company’s financial performance can help clarify the issues to discuss with professional advisers.
Common situations where valuation questions arise
- A shareholder wishes to sell or transfer their interest.
- Shareholders disagree about an exit price or buyout proposal.
- A business is reviewing ownership arrangements or succession plans.
- Parties need to identify the financial information required for an independent valuation.
What should be considered?
Relevant factors may include the company’s financial performance, outlook, debt and cash position, customer concentration, the rights attached to the shares, restrictions in shareholder agreements and the purpose of the valuation. The appropriate methodology and assumptions depend on the specific circumstances.
How Worthli can help
Worthli provides an online business valuation workflow to help organise company information and develop an initial estimate. It may help shareholders prepare for a conversation with an accountant, corporate-finance adviser or lawyer. It is not an expert determination and should not be treated as an agreed or legally binding valuation.
Get appropriate independent advice
Shareholder disputes can have significant legal and financial consequences. Review relevant agreements and seek independent legal and valuation advice before relying on a figure for negotiations, proceedings or a share transfer. A Worthli estimate does not resolve a dispute or guarantee that all parties will agree.
Learn more about the business valuation tool and view the sample valuation report.