A founder wants to transfer 35% of a manufacturing group to two next-generation family members. The family requires an independent valuation that will be referenced in the shareholders' agreement and shared with the bank.
The Valuation & Modelling agent constructs a three-statement model from five years of audited FS, applies all three valuation methods (DCF using a 13.4% WACC, EV/EBITDA at a 6.2× sector benchmark, and an asset-based cross-check), applies a 15% minority discount and 20% marketability discount on the privately held block, and produces a value range of AED 84 million to AED 102 million on a 100% equity basis.
Outcome: report drafted in 5 working days against a typical 14-day quote. Family signs share-transfer agreements with full transparency on basis. The bank accepts the valuation as the basis for refinancing the group's senior facility.
UAE regulations referenced
IFRS 13 — fair-value measurement framework.
Companies Law — Federal Decree-Law 32 of 2021 (share-transfer mechanics).
UAE CT Transfer Pricing — Articles 34–36 where the transfer is between related parties.
Free-zone share register requirements — per licensing authority.
Escalation triggers
Valuation for litigation use.
Impairment-test overlap with going-concern doubt.
Family dispute or conflicting instructions.
Valuation for a regulated entity (bank, insurer, broker).
Valuation that would be relied on for an arm's-length defence with the FTA.
