Business Valuation of a company

Business Valuation of a company

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The owner of the company who lives overseas opened a UK company and gave his friend a UK director 50% of the shares at £1 each (500 shares)

Now the owner wants to buy the shares back from his friend.  His friend is willing to dispose the  500 the shares at £1 each (same value).

However the company has grown rapidly and in two years reached 1m turnover and around 300K operating profit.  Therefore the shares are worth much more than £1.  They have asked me to provide a valuation as low as possible but the owner are willing to pay CGT (on behalf of his friend)

I assume the steps would by:

1) Send Engagement Letter

2) Director resolution to sell the shares

3) Provide Valuation. 

4) Once valuation agreed by both parties.  Issue Share Transfer Document.

5) Complete Annual return Companies House

6) Complete Stamp Duty Formalites

a) Am I missing any steps ?

b) Is a formal Valuation Certificate required ? Is there a format this should follow.

c) While I understand how to do a valuation. Is there template I should use to make it look professional

d) Should I include any disclaimers

Any other inputs would be helpful.  I just want to make sure I dont miss anything.

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