Case Study

Valuation Consulting Related to Shareholder Agreement

calendar iconApril 16, 2019


While a client was preparing a shareholder agreement, the sole owner wanted to allow one of the key members of his management team to acquire equity in the company. The client was put in touch with Cherry Bekaert’s Valuation team to review the proposed terms of the agreement and to offer guidance on some of the provisions related to potential sales or transfers of equity interests.

Cherry Bekaert’s Guidance

The Valuation team reviewed the terms of the draft agreement and provided feedback to the client and their attorney regarding sections of the agreement that relate to transfer or sale of interests.


Some terms of the agreement were added or modified to address important valuation items such as the standard of value, potential discounts for lack of control or lack of marketability, rights of first refusal, and necessary qualifications of valuation professionals. Such changes to the agreement created a more robust document, according to the attorney.