Minority Share Value Calculator
Estimate the indicative value of a minority shareholding in a UK private company using equity value, shareholding %, minority discount and DLOM.
Minority Share Value Calculator
Indicative only - discounts vary with facts.
Pro-rata value
£250,000
After minority discount
£187,500
Indicative value
£150,000
This calculator applies the two discounts sequentially, which is the standard UK approach. The right minority discount and DLOM depend on the specific rights attached to the shares, the company's dividend history and the realistic path to liquidity. Read Minority Discount and DLOM for the factors that move each discount up or down.
Get a precise valuationWhat this calculator does
This tool gives an indicative value for a minority shareholding in a UK private company. It starts with the company's total equity value, applies the shareholding percentage, then applies a minority discount and a discount for lack of marketability (DLOM).
The result is a rough guide only. The exact discounts depend on the rights attached to the shares, the company's dividend policy, any transfer restrictions in the articles or shareholders' agreement, and the realistic path to liquidity.
How the calculation works
- Pro-rata value = Company equity value × shareholding %.
- After minority discount = Pro-rata value × (1 − minority discount %).
- After DLOM = After minority discount × (1 − DLOM %).
The minority discount is applied first because it reflects the lack of control embedded in the shareholding itself. DLOM is then applied to reflect the difficulty of selling unquoted shares.
Typical discount ranges
| Factor | Typical UK range | What moves it |
|---|---|---|
| Minority discount | 5% to 45% | Voting power, board representation, veto rights, deadlock potential |
| DLOM | 15% to 35% | Transfer restrictions, dividend history, profitability, likely exit route |
A 49% stake with no special rights may attract a smaller minority discount than a 10% stake in a tightly controlled company. A profitable, dividend-paying company with a realistic trade-sale path will usually have a lower DLOM than a loss-making company with no exit in sight.
When to get an independent valuation
Use this calculator for early orientation. For any of the following, you will need a defensible independent valuation:
- HMRC review for capital gains tax, inheritance tax or employment-related securities.
- Shareholder buy-out, buy-in or dispute.
- Family transfer, probate or estate planning.
- Transaction preparation or price negotiation.
An independent report sets out the methodology, the evidence behind each discount and the specific rights that affect value. That is what makes the number stand up to HMRC, a court or the other side's advisors.
FAQ
Need an independent valuation?
Fixed-fee reports, prepared to hold up under HMRC and advisor review.
See pricingRelated concepts
Key terms used throughout this guide, defined in the Optival glossary.
- Minority Discount (Discount for Lack of Control, DLOC)
- Reduction applied to the pro-rata value of a shareholding to reflect the holder's inability to direct the company. UK ranges typically run from 5% to 45%.
- Discount for Lack of Marketability (DLOM, Marketability Discount)
- Reduction applied to the value of unquoted shares to reflect the absence of a ready market. For UK SMEs typically 15-35%, applied after the minority discount.
- Independent Valuation
- Valuation report prepared by a third-party expert with no commercial interest in the transaction outcome. Used to establish a defensible reference value for tax, succession or sale.