A house divided – Shareholder disputes call for valuation expertise

Description

Abstract: When shareholders disagree — for example, when minority shareholders oppose a major corporate decision or a controlling owner is accused of wasting corporate assets — the owners may need an appraisal to equitably part ways. But before valuing a privately held minority interest, an appraiser has to address several issues, such as the appropriate standard of value, valuation discounts and adjustments, and the effective appraisal date. This article uses a hypothetical example to highlight these issues, showing how appraisers bring their experience and expertise to bear and help shareholders reach a fair settlement.