Valuation of shares and equity interests contributed to a family foundation – a precise analysis of the value of the contribution
What does the valuation of shares and equity interests contributed to a family foundation involve?
The valuation of shares and equity interests contributed to a family foundation is the process of estimating the value of assets transferred to the foundation for the purpose of establishing or recapitalising the foundation. The valuation is necessary to correctly determine the value of the non-monetary contribution that is the subject of the contribution in kind. We carry it out in accordance with the applicable provisions of civil law and accounting law, taking into account all market and financial aspects.
In the case of a family foundation whose purpose is to manage and protect the family’s assets for generations to come, a precise valuation of the shares or equity interests contributed is crucial, both for tax and balance sheet purposes.
When is the valuation of shares and equity interests needed?
- when establishing a family foundation that accepts equity interests or shares as a contribution in kind,
- increasing the capital of a family foundation by contributing shares or equity interests,
- when transferring shares or equity interests to a family foundation as part of the succession process,
- in situations where a valuation is required by tax authorities to determine gift tax or other liabilities,
- in processes related to assessing the value of family assets, e.g. during asset restructuring,
- when analysing contributions in the form of shares or equity interests to a foundation as part of succession planning or asset transfer.
Who is this service for?
- family foundations that accept equity interests or shares as a contribution in kind,
- entrepreneurs planning to transfer part of their assets to a family foundation,
- notaries and law firms handling processes related to establishing family foundations,
- accounting firms and tax advisers who assist in the succession and asset transfer process,
- investors planning to use a family foundation to manage capital across generations,
- families wishing to retain control over their assets and pass them on to future generations through a well-organised foundation.
How can we help with the valuation of shares and equity interests contributed to a family foundation?
- Analysis of the contribution – we verify the type of shares or equity interests, their nominal and market value, and determine whether they are subject to any restrictions (e.g. agreements, the foundation’s statutes),
- Selection of the valuation method – we select the appropriate valuation method, depending on the facts,
- Data collection – we gather financial data, such as balance sheets, forecasts, information on the structural aspects of the foundation and market information regarding the shares or equity interests being valued,
- Preparation of a valuation report – we prepare a detailed report containing the rationale for the valuation, assumptions made and calculations that can be used for balance sheet, tax or asset transfer purposes,
- Support with contribution implementation – we work with lawyers and tax advisers during the process of contributing assets to the family foundation, ensuring full compliance with regulations.
Why should you entrust us with the valuation of shares and equity interests contributed to a family foundation?
We specialise in professional valuations of assets transferred to family foundations, supporting succession, contribution-in-kind and tax processes. Our valuations combine financial, legal and tax expertise, ensuring reliability and compliance with applicable regulations.
- Experience in valuing assets for family foundations – covers shares, equity interests, property and other valuable assets
- Compliance with legal regulations and the Accounting Act – we ensure the formal and legal correctness of the valuation
- Compliance with tax requirements – we help determine the value of the contribution for tax purposes and settlements with tax authorities
- Comprehensive approach – from analysing the subject of the contribution to a report ready for use in notarial, tax and succession processes
- Confidentiality and timeliness – we guarantee full confidentiality of data and tailor the valuation schedule to the client’s needs
Thanks to our experience, the valuation of shares and equity interests for family foundations becomes a reliable tool supporting succession, contribution-in-kind and tax decisions.
Benefits of a professional valuation of shares and equity interests contributed to a family foundation
- precise valuation of the contribution in kind – in line with legal and tax requirements,
- protection against tax risks – a valuation carried out in accordance with regulations helps avoid issues with tax authorities,
- cooperation with lawyers and tax advisers – we provide full support in the contribution process,
- audit-ready documentation – our valuation reports are prepared with future inspections, audits or reviews by tax authorities in mind,
- optimisation of the succession process – assistance with transferring assets and determining their value within a family foundation.
Our experience
- valuations of shares and equity interests contributed to family foundations across various sectors,
- valuation reports for family foundations when transferring assets as part of succession,
- assistance in determining the value of contributions to family foundations when establishing a foundation or increasing its capital,
- collaboration with notary offices and tax advisers in establishing foundations and transferring assets.
FAQ
Is the valuation of shares and equity interests contributed to a foundation mandatory?
Yes, valuation is necessary to correctly determine the value of the contribution and to meet legal and tax requirements.
What assets can be contributed to a family foundation?
Assets that may be contributed to a foundation include, among others, property, shares, equity interests, enterprises, trademarks, investment portfolios and other assets with a market value.
How long does it take to prepare a valuation of the contribution in kind?
The process usually takes between 1 and 3 weeks, depending on the type of assets and the availability of data.
Can the valuation also cover an enterprise?
Yes, if the enterprise is part of the contribution in kind, its valuation is also carried out as part of the process.
Can I use the valuation for tax purposes?
Yes, our reports are prepared in accordance with tax regulations and can be used for settlements with tax authorities.