Portfolio valuation

The value of share portfolios is not necessarily the same as the pro rata part of 100 percent shareholder value. It depends on what has been mutually agreed to between parties, and whether the departing shareholder is compelled to offer his/her shares.

The company’s articles of association and shareholder agreements may feature agreements on profit distribution, control (e.g. certification of shares) and how shareholder departures should be dealt with (good leaver and bad leaver stipulations). The size of the portfolios of co-shareholders may also play a role.

In order to determine the value of a portfolio of shares, it is essential to thoroughly analyse the playing field in which the transaction occurs. Wingman draws on its many years of experience and in-depth knowledge of rules and regulations to provide clients with a well balanced valuation.