Evaluation of shares (Evaluation of shares in the profits)
While the company value as a total value of the company relates to all shareholders, the value of a share corresponds to the particular part of the owner of the shares in a company.
The value of a share can be determined directly or indirectly. In the direct evaluation of shares, the value of the share is directly inferred from the payment flow between the company and the respective owners of the shares. For the indirect evaluation of the shares, the value of the share is determined from the total value of the company.
Depending on the cause and the intention, objective and subjective evaluation parameters or the price of a share as a parameter can be included. For the inclusion of objective parameters, the value of the company or the share ultimately results from the discounting of the expected financial excess of the share holders. The discounting occurs with a capitalization interest rate which is adequate to the risk of the appraised company.
The inclusion of subjective parameters takes into account individual, personal affairs and targets of the respective share owners for the evaluation of the share value. The price of the company’s share is taken from the free capital market, from supply and demand. This is essentially determined by the use assessed by the respective buyers and sellers and can vary to a greater or lesser extent from the value of the whole company or the respective share in the company’s total value, depending on the quantitative relation between supply and demand and the possibilities of influence the share owners have on the company policies.
As a team of accountants, business economists, attorneys and tax consultants, MerzArnoldWüpper offers you an experienced and capable team, which will answer all significant questions and cover all important areas for you. In the area of Management consultancy, we incorporate all economical, fiscal and legal aspects.
The share values we determine can be the basis for:
- sale or acquisition of a share
- formation of a company by inserting shares
- determination of the remuneration due to be paid for transferred and incorporated shares of a company
- accession of new partners to an existing company
- withdrawal of a partner from a partnership after cancellation
- determination of compensation in the case of exemption of minority shareholders, so-called Squeeze Out (Article 306 AktG, Article 320 AktG, Articles 19, 207 UmwG)
- compensations of minority shareholders consisting of shares of the controlling company (Articles 305, 320 AktG, Articles 19, 29 UmwG)
- fusion/merger of existing companies
- demerger/split-up of a partnership into sole proprietorships
- determination of the value of unlisted shares in a corporation for reasons of the law of succession
- equalization of net property gains (marriage law)