We provide independent buyout valuations that both sides can examine, and we work within any valuation mechanism already set out in the company's documents.
Situations
When UAE clients ask for this valuation
- 1A partner is retiring or relocating and the others will buy their shares.
- 2The shareholders' agreement requires a fair value or market value on exit.
- 3A partner is leaving after a disagreement and a negotiated settlement is preferred to litigation.
- 4The company is buying back shares or reducing capital.
Who asks us
Typical clients
- Departing and remaining partners
- Companies acting through their boards
- Lawyers negotiating exits
What we value
The subject of the valuation
The departing shareholder's interest on the basis required by the documents or agreed between the parties.
Our method
How we reach the figure
We start by reading the MoA and any shareholders' agreement to establish the valuation mechanism: who appoints the valuer, the basis of value, the valuation date, whether discounts apply and whether the valuer acts as an expert. We then value the company and apply the required basis.
Where the business will fund the purchase over time, we can comment separately on affordability and deferred payment structures.
| 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 basis set by the MoA or shareholders' agreement is then applied to the departing holding.
Value drivers
Points that move the value
- The mechanism
- The definition of value and the procedure set in the documents.
- Valuation date
- The date of the exit notice, departure or another defined event.
- Partner balances
- Loans, current accounts and unpaid profit shares to be settled alongside the shares.
Documents
What we will ask you for
- MoA and shareholders' agreement
- Exit notices and correspondence
- Financial statements and partner account balances
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A buyout valuation report, or an expert determination where the documents require one.
Timing
Usually two to four weeks, or as set by the documents.
Fees
Quoted in writing; joint instructions can share the cost between the parties.
What affects the feeCompare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Can both partners instruct you?
- Yes. A joint instruction is often quicker and cheaper than each side appointing its own valuer.
- What if we cannot agree after the valuation?
- We can act as an independent expert determiner where the parties agree, or provide evidence if the matter goes to court or arbitration.