Taking Care with Share Valuations

From time to time accountants are asked to value shares in private companies.

Explain the Methodology

When undertaking this task the accountants should always explain in their report the methodology that has been adopted and any assumptions that have been made.

It is worth pointing out that much depends on the circumstances of the buyer, and overall market conditions which can rapidly change.

The Market Determines the Price

It is the market that determines the price at which a sale can be achieved, and this ultimately determines the value of the shares.