We value private companies on their own and as part of wider groups, and we map the structure before valuing it, so that value is neither counted twice nor lost between entities.
Situations
When UAE clients ask for this valuation
- 1Shares in a holding company are being transferred, gifted or restructured.
- 2A group is being simplified, for example by moving free-zone subsidiaries under a new holding company.
- 3An investor is buying into one entity of a wider group.
- 4The board needs an independent value for internal planning or a shareholder resolution.
- 5A lender or co-investor asks for evidence of the value of a company's equity.
Who asks us
Typical clients
- Directors and shareholders
- Family offices and holding company boards
- Group CFOs
- Corporate and tax advisers
What we value
The subject of the valuation
Trading companies, holding companies, groups with mainland and free-zone subsidiaries, and DIFC and ADGM entities. For a holding company, we value each underlying investment on the appropriate basis and then consider costs and liabilities at holding level.
Intercompany loans, guarantees and shared services are reviewed so that each entity's value reflects what it actually owns and owes.
Our method
How we reach the figure
Trading subsidiaries are generally valued on maintainable earnings or discounted cash flow, cross-checked against market evidence. Investment and property-holding entities are often valued by reference to the net asset value of what they hold, using specialist valuations of underlying physical assets where needed.
At group level we consider whether the sum of the parts reflects how a buyer would value the group as a whole, and whether holding-level costs, tax or the lack of control over particular subsidiaries should be reflected.
| Income | Earnings-based approaches for trading subsidiaries | Usual starting point |
|---|---|---|
| Market | Market evidence | Cross-check |
| Asset | Net asset value for holding and investment entities | Where relevant |
Value drivers
Points that move the value
- Group structure
- Which entity holds which licences, contracts, employees and assets.
- Intercompany balances
- Loans and trading balances between group companies, and whether they are recoverable.
- Control
- Whether the holding company controls each subsidiary or holds a minority or joint interest.
- Holding costs
- Management, audit, licence and financing costs that sit above the operating companies.
- Jurisdiction
- Differences in ownership rules and transfer restrictions between mainland, free-zone, DIFC and ADGM entities.
Documents
What we will ask you for
- A group structure chart with ownership percentages
- Financial statements for each entity, and consolidated accounts where prepared
- Constitutional documents for the companies being valued
- Intercompany balance schedules and agreements
- Details of any external valuations of property or other physical assets
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
Reports show the value of each relevant entity and how they combine, so the board and advisers can see where value sits in the group.
Timing
Timing depends on the number of entities and the state of the group's records. We agree a timetable once we have seen the structure.
Fees
Fees reflect the number of entities, the complexity of the structure and the report required, and are confirmed in writing in advance.
What affects the feeCompare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Can you value a free-zone company owned by a mainland LLC?
- Yes. We value each entity in the chain and consider the rights and restrictions that apply at each level.
- Do you value the property a company owns?
- No. Where a company holds significant real estate, we rely on a valuation from an appropriately qualified property valuer and incorporate it into the company valuation.
- Can you value a DIFC or ADGM holding company?
- Yes. The valuation follows the same principles, with attention to the entity's articles and the regulations of the relevant centre.