A shareholder holding 95% or more of the issued share capital of a company can initiate statutory buy-out proceedings against the minority shareholder or shareholders in order to acquire 100% of the shares. The majority shareholder has the right to squeeze out the minority shareholder or shareholders and gain ownership of the remaining shares.
If the date of the availability for payment and the purchase price offered in the public bid is accepted, then a separate valuation is usually no longer necessary.
However, if the minority shareholder or shareholders are not able to accept the public bid, for example because the acceptance period of the public bid has expired or no public bid was made, the squeeze-out price can be determined based on an independent valuation report. It is common practice in such cases that the date of the valuation report is equal to the date on which the squeeze-out price per share is determined. As this date may be before the date of the summons, an efficient procedure can be followed. Since we will have done our homework by then, we can step up to the plate quickly and with confidence.
Wingman Business Valuation has recently been involved in various squeeze-out procedures of minority shareholders. We have carried out valuations on behalf of the bidder, but we have also been appointed by the Enterprise Chamber as independent expert. Our valuation reports have been used as a basis to determine the compensation given to the minority shareholders. In other words, he know the tricks of the trade.