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Open market value

In order to determine the value of a company’s shares in connection with a transaction involving employees, it is usually necessary to determine the price that a willing buyer would pay a willing seller, assuming that both of them have full knowledge of all information that is publicly available at the time of the sale.

One factor that must be taken into account is the size of shareholding. It is generally recognised and understood that where somebody has a very small uninfluential shareholding that this is worth considerably less per share than a controlling shareholding.

As an example, while some shares that form part of a 100% shareholding will clearly be worth the appropriate percentage of the whole value of the company, if an employee is offered 0.01% of the company’s shares, they will not have any significant