Defensible valuations of private company shares and unit trust interests.
For shareholder transfers, unit redemptions, minority interest valuations and class structure matters. With appropriate discount and premium analysis.
A private share or unit valuation establishes the market value of a specific equity interest in a private company or unit trust — distinct from the value of the underlying entity. The interest being valued may carry minority discount, lack of marketability discount or control premium considerations. Prismi prepares these reports for shareholder transfers, unit-holder exits, related-party transfers and estate matters.
The interest is what we value
A minority shareholding in a private company does not equal the proportionate share of the entity's value. A 25% non-controlling interest is typically discounted for lack of control and lack of marketability. A 75% controlling interest may attract a control premium. Our reports identify the specific interest, analyse the discount or premium applicable, and document the reasoning for the quantum applied.
Class structure matters
Private companies and unit trusts often have multiple share or unit classes with different voting, economic and rights characteristics. Each class is valued in light of its specific rights. The report analyses the class structure and the relative rights before concluding the value of the specific interest.
Documents required
- ·Shareholders' agreement or unit trust deed
- ·Constitution / company rules
- ·Recent transactions in the same class (if any)
- ·Class structure documentation
- ·Voting and economic rights schedule
- ·Standard CGT valuation document set
Common questions.
How large is the minority discount typically applied?+
Minority discounts depend on the class rights, the number of other holders, the liquidity of the interest and the entity's circumstances. Discounts in the 10–35% range are common; the specific quantum is documented and reasoned in the report.
Do you value preference shares and hybrid instruments?+
Yes — these require additional analysis of the specific rights and the appropriate methodology, which may include income-based, market-based and option-pricing approaches depending on the instrument.
Ready to discuss your engagement?
Fifteen-minute discovery call. We confirm the tier, fee and timing before you commit.
Talk to a valuer