Minority shareholder matters
September 2, 2025
Over the summer we have been very busy with valuations, but it has become clear that more and more people are holding minority stakes in companies with little or no understanding of how you work out what the holding is worth.
I am not speaking about smart angel investors here, I mean the family members or heirs who end up owning a stake in a family business through inheritance or gifting.
Some of these stakes will be very valuable; others, maybe the majority, much less so.
To help, we have prepared a little guide for you to share with these individuals if they are your clients (or even the relatives of your clients).
Our guide discusses how the mechanics of owning such shareholdings works (what to look for in the Articles of Association), touches on valuations and why minority holdings are usually worth less than majority shareholdings and also touches on The Big Things to Understand about being a small shareholder in a Private Company.
Would you like a copy? If so please email me: modwenna.rees-mogg@athlacapitalmanagement.com.
We cannot help but feel it might be useful, as families in particular plan for the changes to Inheritance Tax.
With the arrival of September and that ‘new term’ feeling, we’ve been polishing our shoes and filling up our pencil case in preparation for the next few months. The next big thing we are all now waiting for is the Budget in October. Will there be more tax changes announced that will impact on valuations?
We are also keeping a weather eye on inflation figures – it’s not encouraging that inflation is creeping up.
Often people contextualise valuing shares and companies around the financial information, but its horribly common for companies not to work the wider risks or opportunities created by macro and geopolitical events into their numbers.
We specialise in digging out the issues that matter and help to explain the intangible value in businesses in a way that people AGREE with. For me it’s the best bit of preparing a valuation, though my colleagues who have got science, maths and business degrees love the numbers most.
It’s actually this blend of experience that differentiates our valuation conclusions from those prepared by number junkies.
Are you seeing a lot of clients who need an accurate defensible valuation fast – for a deal, for the tax authorities or simply to have a guide so proper planning can take place? If so, do give us a buzz. Our team is never too busy to assist.
