We value LLC ownership interests for transfers, partner exits, restructurings and disputes, reading the constitutional documents alongside the accounts.
Situations
When UAE clients ask for this valuation
- 1A partner is transferring part or all of their shares in the LLC.
- 2Ownership is changing following the move away from local sponsor arrangements.
- 3A partner is retiring or leaving and the remaining partners will buy the shares.
- 4Ownership percentages are being changed through a capital increase.
Who asks us
Typical clients
- LLC partners and managers
- Accountants and legal advisers
- Incoming investors
What we value
The subject of the valuation
Shares in mainland LLCs under the Commercial Companies Law, and in free-zone LLCs under the regulations of the relevant free zone, including the profit-sharing arrangements set out in the MoA where they differ from shareholding percentages.
Our method
How we reach the figure
We value the company and then the interest, considering the partner's share of profits, voting rights, rights on a sale, and any pre-emption rights other partners hold under the law or the MoA. Where historic side arrangements exist, we value the economic interest as documented and state the assumptions made.
| Income | Sustainable profit or projected cash flows | Usual starting point |
|---|---|---|
| Market | GCC and international deal and listed-company evidence | Cross-check |
| Asset | Restated balance sheet value | Where relevant |
The company value is then applied to the specific holding, considering control, transfer restrictions and the rights in the MoA and any shareholders' agreement.
Value drivers
Points that move the value
- MoA terms
- Profit distribution, management appointment and decisions requiring special majorities.
- Pre-emption
- Other partners' rights to acquire shares before they can be sold to outsiders.
- Capital contributions
- Unpaid capital, partner loans and current account balances.
- Licence dependence
- Whether licences and approvals are tied to particular partners.
Documents
What we will ask you for
- Memorandum of Association and amendments
- Trade licence
- Financial statements
- Partner current account and loan balances
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A report on the value of the LLC interest suited to the transfer, exit or negotiation it supports.
Timing
Usually two to four weeks.
Compare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Does the percentage in the MoA decide the value?
- It is the starting point, but profit-sharing terms, partner balances and control rights can mean value differs from a simple percentage.
- Do you advise on the legal transfer process?
- No. We provide the valuation; the transfer itself is handled by your legal advisers and the licensing authority.