The value of a company's shares is not automatically determined by law. The person responsible for establishing it may vary depending on the context in which the valuation is required and the agreements reached between the shareholders.
In many SMEs, a shareholders' agreement containing buy-sell clauses specifies a method for determining share value and, in some cases, designates the person or professional responsible for this determination. This approach helps reduce the risk of disagreement when a shareholder sells their shares, becomes incapacitated, leaves the company voluntarily or involuntarily, or dies.
In the absence of such an agreement or an applicable valuation method, the shareholders may agree on the value of the shares themselves. If no agreement is reached, or when circumstances warrant, it may be necessary to engage a professional specializing in business valuation.
It may be necessary to determine the value of shares in the following situations:
The value of shares depends on several factors, including the company's financial situation, the value of its assets and liabilities, the risks assumed in its operations, the guarantees provided, its profitability, its growth prospects, and the class and rights attached to the shares in question. Two companies with the same share capital can therefore have shares with very different values.
In summary , the value of shares can be determined by the shareholders themselves, according to the terms stipulated in a shareholders' agreement containing buy-sell clauses, or, when circumstances warrant, by a professional specializing in business valuation. Establishing a valuation method facilitates transactions and reduces the risk of disputes between shareholders.