The shareholders of company B, C and D have acquired shares in a new holding company A in exchange for their shared in B,C,D. No money changed hands.
Am I correct in saying the purchase consideration is the fair value of the shares in B/C/D? In which case it is pretty hard to ascertain this since its a private company. Would I simply use the nominal value of the shares in B/C/D?
Comapny B also has a share premium account of c£300k. Would this form part of the purchase consideration also?