We value the business or shares being transferred as if the parties were unrelated, giving advisers evidence that the price meets the arm's-length standard.
Situations
When UAE clients ask for this valuation
- 1Shares are sold by an owner to a company they control, or vice versa.
- 2A business is transferred between sister companies owned by the same family.
- 3A connected person acquires or disposes of a business interest.
- 4A director or shareholder buys an asset from the company.
Who asks us
Typical clients
- Tax advisers
- Owner-managers
- Family offices
What we value
The subject of the valuation
Businesses, business units and shareholdings changing hands between related parties or connected persons.
Our method
How we reach the figure
We value the subject on the basis an independent buyer and seller would adopt, ignoring the relationship between the actual parties. Where the transfer is of a minority holding or of shares with restricted rights, those rights are reflected as they would be between strangers.
| 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 |
Valued on the basis the transaction requires, as if between independent parties. The tax treatment is for your corporate tax adviser.
Value drivers
Points that move the value
- Independence assumption
- Valuing as though the parties were unrelated.
- Terms of the transfer
- Payment terms, deferred consideration and conditions.
- Comparable evidence
- Market data that supports the price.
Documents
What we will ask you for
- Transaction documents
- Financial statements of the subject
- Details of the relationship between the parties
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A valuation report suited to inclusion in tax and transfer pricing files.
We provide valuation evidence, not tax advice. Whether a transaction must be priced at market value, whether a relief applies and how the result is reported are matters for your corporate tax adviser under the applicable rules.
Timing
Usually three to four weeks.
Compare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Is a family member a related party?
- Under the Corporate Tax Law, related parties include certain relatives and entities they control. Your tax adviser will confirm whether the rules apply to your transaction.