Commentary

I8.314 Valuation of unquoted ordinary shares

IHT, trusts and estates

I8.314 Valuation of unquoted ordinary shares

I8.314 Valuation of unquoted ordinary shares

The valuation of shares necessarily involves making assumptions about the future, because what a purchaser will pay for the shares in the open market depends upon the expected benefits, in the form of dividends or directors' remuneration, or capital by way of capital distribution, a take-over bid, a public flotation or a liquidation. All valuations require the valuer to take a view about the state of the nation, both politically (the possibility of nationalisation, limitation of dividends, restriction on borrowing, price controls, etc) and economically (the purchasing power of the population, the cost of borrowing or lending money, etc), of the industry or trade in which the company operates, and of the performance of the company itself in

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