Shareholder buyouts are common in closely held businesses for a number of reasons including retirement, death, divorce or disputes among shareholders. These buyouts can be very costly to parties who feel they receive too little or pay too much for the transfer of shares.
Even when a buy-sell agreement exists, it is prudent for the shareholders to engage the services of a trained and accredited valuation analyst to update the valuation. Valuation professionals can help mitigate the risks associated with a shareholder buyout by preparing a sound valuation report that is based on a comprehensive analysis of the factors affecting the value of the business.
Sun Business Valuations has extensive experience in performing valuations relative to shareholder buyouts. This role is carried out either as an expert for one of the parties, or working together with multiple shareholders in an effort to achieve amicable resolution in a more cost effective way. Sun Business Valuations is a professional certified business valuation firm that will provide an accredited third party business valuation that will likely mitigate conflict by leading the parties to achieve an equitable settlement. Sun Business Valuations can provide expert testimony in shareholder dispute matters when needed.