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Do You Need to Know How to Value Shares in a Private Company?

We are happy to explain the process and what you would need to provide, so why not phone the office on 01425 402 402. In the meanwhile you may find the information below to be useful...

Many sectors have an industry specific formula for valuing the business based on a multiple of net profits. R A Valuation Services Limited can provide the multiple for your sector, and calculate a share price valuation based on the business' trading performance.

It may be a certain multiple of adjusted net profit, in which case the valuation and share price calculation can be relatively simple. If the business is successful and demonstrates a growing trading trend, and/or it has a unique system that sets it apart from the competition, it can increase the multiple.

Other methodologies for valuing shares in private company include industry specific valuations, asset valuations and discounted cash flow. Click here for more information on valuation methodologies.

Bear in mind that the market value (or even selling price) is what someone is willing to pay. Perhaps uniquely, R A Valuation Services Limited holds and updates a database of previously achieved open market sale prices to verify and justify any approach to valuation taken.


How to value shares in a private company


An expert business valuation supported by a professionally prepared Valuation Report from an independent and authoritative source is an essential aid for:

  • Acquisition and divestment negotiations
  • Management buy-out and management buy-in
  • Business sale and business purchase
  • Director, shareholder, partner change
  • Restructuring
  • Matrimonial / divorce settlements
  • Dispute resolution
  • Litigation
  • Tax planning (e.g. EMI schemes), tax agreements and tax disputes
  • Incorporation
  • Borrowing and funding
  • Business development
  • Strategic planning
  • Performance benchmarking and indicators
How to value shares in a private company


Valuation Reports produced by R A Valuation Services Ltd are bespoke and geared to each client’s individual circumstances and requirements; they are definitive and realistic in the market place. As we are recognised as expert witnesses for supplying Valuation Reports to UK courts and HMRC queries/challenges, we are acknowledged to be the authoritative business valuer by:

  • HMRC including:
  • Shares and Assets Valuations (SAV)
  • Valuation Office Agency (VOA)
  • UK Courts
  • Banks
  • Other lenders and financial intermediaries
  • Tax specialists
  • Accountants

R A Valuation Services' Valuation Reports are tailor-made for their purposes, definitive and realistic in the market place. Indeed, such is their authority that an R A Valuation Services' Valuation Report is normally insisted upon in support of negotiations.