Private companies do not have a quoted share price to provide a value of their shares. Therefore for those private companies that wish to have a level of employee share ownership and provide employees with an opportunity to buy and sell shares, it is often a requirement of such share schemes that an independent valuation be performed.
At City Valuation Advisory, we provide independent opinion on the value of shares of a private company for the purpose of assisting management or the board of directors in determining the trading price for the buying and selling of shares by employees.
We work with the company to understand the required basis for valuation e.g. whether or not a discount for a minority holding is to apply and to agree the process for the valuation including information basis, timing and deliverable.
We will typically discuss with management and/or the board our reasoning supporting our valuation opinion; presenting our valuation conclusions and answering questions.