We value minority interests by looking at the rights actually attached to them and at the purpose of the valuation, rather than applying a generic percentage discount.
Situations
When UAE clients ask for this valuation
- 1A minority shareholder is selling to the majority or to a third party.
- 2A minority interest is being transferred to a family member or related party.
- 3An investor is reporting a minority stake at fair value.
- 4The value of a minority holding is in dispute.
Who asks us
Typical clients
- Minority and majority shareholders
- Investors and family offices
- Lawyers and tax advisers
What we value
The subject of the valuation
Non-controlling interests in private companies, including holdings that carry blocking rights or board seats.
Our method
How we reach the figure
Where the basis of value is market value for a holding sold on its own, the lack of control and marketability is usually reflected, either through dividend-based valuation or adjustments to a pro rata value. Where a contract or court requires a pro rata value, no such adjustment is made.
| Income | Company value on maintainable earnings | Usual starting point |
|---|---|---|
| Income | Dividend yield for small holdings | Cross-check |
| Asset | Restated balance sheet value | Where relevant |
Whether a minority adjustment applies depends on the basis of value and the documents, not a standard percentage.
Value drivers
Points that move the value
- Blocking rights
- Whether the holding can veto key decisions under the articles.
- Dividend policy
- The income the holder can expect without control.
- Exit routes
- Tag-along rights, put options or a realistic prospect of sale.
Documents
What we will ask you for
- Constitutional documents and shareholders' agreement
- Dividend history
- Financial statements
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A report explaining the value of the holding and the reasoning for any adjustment from a pro rata value.
Timing
Usually two to four weeks.
Compare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- What is a typical minority discount?
- There is no typical figure. Any adjustment must be justified by the specific rights, the purpose and the evidence.