Share valuations
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" The valuation of unlisted shares is highly subjective, especially when the object is to fix a fair price for acquisition by the company or by the owners fellow shareholders" Share valuations are necessary because there are many circumstances when shares in private companies need to be valued, these include * Management buy outs, buy ins or disposals * Determining a price for the purchase by a company of its own shares * Setting a price for employee share options and management incentive schemes * Inland revenue "fiscal" valuations for capital gains tax, inheritance tax, capital duty, and stamp duty. * Determining a fair value in a legal or commercial dispute. What makes share valuation difficult is that every company is different and individual circumstances must be considered in depth, in order to arrive at a value, in valuation there is likely to be some conflicting pressure between parties, this reinforces the need for valuation to be...

