9 Important Questions About Unanimous Shareholder Agreements
8. How can the USA affect Valuation
There are several methods that can be used in a USA to determine share price. These include:
Periodic Agreement: The parties commit to agree upon a value from time to time, for example on an annual basis.
Specified Formula: This could be based upon book value, a multiple of earnings or cash flow, or another appropriate basis for the company.
Determination by a Third Party: Parties will often enlist professionals, such as accountants or business valuators to determine share value. In this case, it is important that parties agree in advance to be bound by the independent valuator’s determination.