26 May 2017
Hello , I am considering buying the shares of another director , he has proposed the value be calculated in the following method . Initial Paid up capital + current book value + plant and machinery + land and building + general reserves and surplus + current year profit == company value x % of shares held by him .
can some one pls guide me as to how this is normally done .thanks
12 July 2017
you can some valuer to value the fair market value of the shares, if the said director is ready..... The formula given by you sounds incorrect
Querist :
Anonymous
Querist :
Anonymous
(Querist)
14 July 2017
now he has come down to NAV method , while the valuer has given NAV + profit of last 5 years on weighted basis . average of these 2 , but the director wants to take only NAV which is higher .
BTW 20 years there has been no participation by him , its been just me .