Company Valuation

Valuing shares is different to valuing an unincorporated business or partnership. The main reason for this is that shares in a company are subject to terms and restrictions which an unincorporated business or partnership do not have. Transferring shares from one party to another, voting rights, allotment of bonus shares or restricted value for bad leavers are only a few  of the aspects that need to be taken into account when valuing shares in a company.
















In general valuing an entire shareholding is more similar to valuing a business as the acquiring party would have full control over the terms and features of the shares. The general valuation method for valuing shares in a company is the market comparison method as share available or listed in the market are closer in comparison and there is readily available information on company sales.

Careful consideration need to given to the articles of association and memorandum of association of the company in question for which the shares are being valued. Usually corporate lawyers are readily available to provide specialist advice to guide you through the terms and features of shares before you think about assigning a value to the shares. Use of such lawyers provides clarity on the legal features attached to the shares and dedicated valuation specialists can provide advice on the impact on the value of shares in respect of those features.