Commentary

127.5 Valuation of the company’s business

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

127.5 Valuation of the company’s business

| Commentary

127.5 Valuation of the company’s business

The valuation of the outgoing shareholder’s shares will obviously involve the valuation of the company’s business as a whole. The first decision is whether to value this on an earnings basis, that is, as a going concern, or on an assets basis, on the assumption that the business is to be broken up and its assets sold on the open market1. Presumably, where the business is thriving, the court will go for the first option. It is only where the company has already ceased business, or is unlikely to be able to carry on

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