01The short answer
Value the operating businesses on the approaches that suit them, then value each family member's interest according to the ownership structure, any family charter and the restrictions on transfer. Doing both at once, at the same date, keeps the figures consistent between family members.
02Common situations
- A founder transferring shares to the next generation
- One branch of the family buying out another
- Moving operating companies under a family holding company or foundation
- Registering as a family business and agreeing values under a charter
03Points that affect value
Dependence on the founder, related-party trading and property arrangements between family companies, and limits on selling shares outside the family all affect value and must be dealt with explicitly.
04What the valuation does not decide
The valuation establishes value. Inheritance shares, Sharia principles and the legal effect of trusts and foundations are matters for the family's legal advisers.
This article explains general principles for UAE readers. Your own valuation will depend on your company, its documents and why the figure is needed, so speak to us before relying on it.