By Bill Anderson, FCCA, Chief Executive Officer — Assetica, Dubai, UAE
Definition: Succession turns on one number, and if it is not independent and defensible, it becomes the thing the family argues about. Assetica provides independent business valuations for family business succession in the UAE: inter-generational transfer, equalising between heirs where one child runs the business and others do not, moving a business into a DIFC or ADGM Foundation or trust, wills and probate, and contested inheritances. Each heir’s specific stake is valued fairly, with discounts for lack of control and marketability where a minority interest is involved, to RICS and IVS standards, in strict confidence.
Inter-generational transfer, giving the next generation one number everyone accepts; equalisation between heirs, isolating the operating business from the wider estate so the split is evidenced; Foundations, trusts and estate planning, providing the market value a DIFC or ADGM structure and the tax authorities can rely on; and wills, probate and disputes, with reports prepared to stand as evidence where an estate is contested before the DIFC and ADGM courts.
Value the stake, not the slice: a 25 percent holding is rarely worth 25 percent of the company. Owner dependence: a business that runs on the founder personally is worth less to a successor, and that gap is quantified. Normalised earnings: family salaries, personal costs and related-party arrangements are stripped out to reach the profit the next generation actually inherits. And independence: a number set by one family member, or by a conflicted adviser, is the fastest route to a dispute.
Succession valuations sit within Assetica’s core business valuation in Dubai practice, alongside family office valuation, our guide to succession planning for family businesses, and buyout valuations.
Why do I need a valuation for succession planning?
Because succession turns on a number, and if that number is not independent and defensible, it becomes the thing the family argues about. A valuation sets what the business is worth, values each heir's specific stake fairly, and provides an evidenced basis for an inter-generational transfer, an equalisation between children, a move into a Foundation or trust, a will, or a probate. Assetica prepares these to RICS and IVS standards, in confidence, so the plan rests on a figure all sides can accept.
How do you value a family business for succession?
The same way any business is valued, then adapted to the family situation. Maintainable earnings are normalised to strip out family salaries, personal costs and related-party arrangements; a discounted cash flow, market multiples and an asset-based cross-check are reconciled into a defensible range; and the specific stake each heir will hold is valued, with discounts for lack of control and marketability where a minority interest is involved. Owner dependence, common in family firms, is quantified explicitly because it directly affects what a successor inherits.
Is a child's minority stake worth its percentage of the company?
Usually not. A minority holding that cannot control dividends, appoint directors or force a sale is worth less per share than a controlling interest, because of discounts for lack of control and lack of marketability. In a fair succession this matters: valuing every stake at a straight pro-rata share can significantly over-reward a minority heir and under-reward the one running the business. The valuation must value the specific holding, shaped by the articles and any shareholders' agreement.
Do you value businesses moving into a DIFC or ADGM Foundation?
Yes. Placing a business into a DIFC or ADGM Foundation, a trust or a holding structure requires a market value the structure and the tax authorities can rely on, dated to the transfer and documented. We prepare the valuation for the transfer and disclose the methodology so it can be defended, working alongside the corporate and legal advisers who establish the structure.
Can your succession valuation be used in a will or a dispute?
Yes. Our reports are prepared to RICS and IVS standards and are accepted for UAE wills and probate, and they stand as independent evidence where an inheritance or a family shareholding is contested, including before the DIFC and ADGM courts. Independence is the point: a valuation that serves one branch of the family carries no weight with the others, whereas an independent report can settle the matter.
How long does a succession valuation take?
Typically five to seven business days from complete documentation, with two to three day expedited delivery available where a transfer, a filing or a court date is time-sensitive. The scoping call is free and handled in strict confidence.