A share is a stake in a joint-stock company, and its value derives from the value of the issuer's business. Yet shares of identical par value in the same company can be worth very different amounts: a minority stake, a controlling stake and a 100% holding are three distinct valuation subjects, each with a different per-share value. An independent share valuation establishes the market or fair value of a specific stake for a specific purpose — from a notarial inheritance to a mandatory buyout.
The Kanzas company values shares and share stakes in Ukrainian companies for domestic and international clients — transactions, corporate procedures, financial reporting and litigation.
What we value
- minority stakes — down to a handful of shares in an individual's estate;
- blocking, controlling and majority stakes;
- 100% shareholdings;
- shares of private and public joint-stock companies, listed and unlisted;
- stakes within securities portfolios.
The defining feature of stake valuation is premiums and discounts: for control (the ability to influence corporate decisions) and for liquidity (the ability to sell quickly). Applying these adjustments correctly is what separates a professional share valuation from mechanically dividing business value by the share count. If your subject is a participatory interest in an LLC rather than shares, see our corporate rights valuation service.
When a share valuation is required
- purchase or sale of a stake;
- mandatory fair value determination in a squeeze-out of minority shareholders;
- share issues and additional issues;
- revaluation of financial investments under IFRS;
- inheritance and notarial procedures;
- litigation, including judicial restoration of title to shares;
- transactions subject to the requirements of the Ukrainian securities regulator;
- collateral, contribution to charter capital, liquidation.
Valuation methodology
Shares of an unlisted company are valued through the value of the issuer's business, applying the approaches used for going-concern valuations: the income approach (discounted cash flow for profitable operating companies), the asset-based approach (net asset value — the baseline for holding and asset-heavy companies) and the comparative approach (transactions in similar businesses). A control premium or minority and illiquidity discounts are then applied depending on the size of the stake. For listed shares, exchange quotations adjusted for trading volumes serve as the market benchmark. The choice of approaches and adjustments is justified in the valuation report with reference to the purpose of the engagement.
How the engagement is carried out
After the purpose and scope are agreed and the contract signed, the valuer identifies the subject shares on the basis of securities account statements, analyses the issuer's financial condition, industry and capital structure, performs the calculations with a reasoned application of premiums and discounts, and issues a valuation report that is fully valid for notaries, banks, courts, the securities regulator and other Ukrainian state authorities. Key documents include the securities account statement or shareholder register extract, the issuer's charter and financial statements for three to five years, and information on the capital structure.
Our experience
The Kanzas company has been valuing shares for more than 20 years, covering stakes in over 100 companies across a wide range of industries: energy, construction, trade and trading, food and light manufacturing, IT and information services, healthcare, cosmetology, catering and entertainment. We have valued both minority and majority stakes — for IFRS revaluations, transactions, share issues and litigation, including repeated engagements to support the judicial restoration of title to shares. A separate large-scale practice was the revaluation of securities portfolios of insolvent banks in cooperation with the Deposit Guarantee Fund of Ukraine in 2015–2020. Our team includes appraisers holding international valuation certificates.
Questions and answers
What is fair value in a squeeze-out? In a mandatory buyout of minority shareholders, Ukrainian law requires an independent valuer to determine the fair value of the shares. This is a distinct procedure with specific requirements — see our squeeze-out valuation page.
Why is a minority stake worth less than its proportional share of the business? Because of discounts for lack of control and lack of marketability: a small holder cannot influence corporate decisions or sell quickly at the calculated price. The valuer supports the size of the discounts with market evidence.
Title to shares is disputed — can a valuation help? Yes. Our practice includes repeated share valuations supporting the judicial restoration of ownership: the report establishes the claim amount.
How long is the valuation report valid? As a general rule, six months from the valuation date, unless specific legislation provides otherwise.
We value your time: standard inheritance valuations are completed within days, and complex corporate cases receive detailed individual attention. To discuss your project, email us or message us via your preferred messenger.
