Give every component a name
A proposal described as a “buyout figure” may bundle several items. Ask what relates to the shares and what relates to a shareholder loan, unpaid remuneration or another balance. The legal and tax treatment of those items needs appropriate advice. A single total is not enough to understand what is being transferred or settled.
Illustrate the distinction
Suppose an illustrative negotiation refers to £300,000 for shares and a separate £40,000 loan balance. The combined £340,000 is not evidence that the shares alone are worth that amount. Whether the loan is repayable, transferable or otherwise dealt with depends on the facts and terms. The example shows the importance of clear labels, not a recommended settlement.
Add a timetable
An agreed amount may be paid immediately, in instalments or subject to conditions. Put the proposed dates and assumptions in a separate schedule. A financial comparison can show how receipts vary under different outcomes; the solicitor should advise on obligations, security and enforceability.
Prepare a useful valuation enquiry
Explain the holding, company structure, reason for the exit and documents available. Identify the intended users and relevant date. If there is a dispute, say so at the outset because the role and suitability of the engagement need to be assessed. Do not assume that a simple whole-business estimate answers a specific share-transfer question.
Prepare for the conversation
- Label shares and separate balances individually.
- Identify the holding, date and intended use.
- Record proposed payments and conditions.
General preparation guidance, not a valuation opinion or legal or tax advice. Any assignment is subject to an agreed scope, suitability and intended-use review. Examples are illustrative, not client cases.