The Purpose of the Valuation

No valuation of a business or shares in a company should be undertaken without first identifying the “purpose” of the valuation.

Generally, the purpose should not affect the outcome; but may in situations involving minority share holdings. For most CAs using this website, the valuation is likely to involve one of the following:

  1. Restructuring including transfer of shares to a Trust;
  2. Succession and estate planning;
  3. Taxation and evidence of value for the Inland Revenue;
  4. Inheritance issues and transfer of wealth;
  5. Exit of a shareholder, dividends and value considerations;
  6. Buy back agreements;
  7. Mergers and/or acquisitions;
  8. Capital raising; and
  9. Employment or incentive schemes.