Creating value and liquidity for shareholders: the approach of Deminor

Deminor helps by creating the right arrangements to create liquidity for shareholders and to create value for the company.

Deminor has a team of financial and legal experts with unique expertise and experience in the field of shareholder agreements.

Problem

SMEs are usually not quoted on the stock exchange, which means that there is little or no liquidity for the shares.  There are also often restrictions on the transfer of shares which makes it more difficult to find a buyer for a minority stake in an SME without the cooperation of the other (majority) shareholders.

In addition it is often not wanted in family businesses to let strangers participate in the capital.

This may create tensions because some shareholders, family members or partners wish to withdraw, finding it impossible to reach an objective and fair solution.  Sometimes everyone agrees that this is the most appropriate solution in the interests of the company and of all parties, but no agreement is reached or financing is found.

Our solution

Deminor guides you in making the right arrangements to create value for your shares and enjoy the desired liquidity within the predefined time horizon.

This is accompanied by a thorough analysis and valuation of the company and your participation.

In addition, a tailor-made solution is sought within your company in function of the time horizon for an exit, the financing possibilities, the possible internal or external candidates to take over the participation, and the agreements that all parties are prepared to engage into.

The objective is to make arrangements in writing as soon as possible (which can be incorporated into a shareholders’ agreement) to regulate the marketability of the shares.  It is usually agreed that a certain party (existing shareholder, group company, operating company, third party, etc.) will be appointed to take over (part of) the participation, temporarily or otherwise, under strict conditions.  Usually it is also planned to make an annual or regular valuation, for all shareholders to be able to follow the evolution of the value.

Our approach:

Deminor guides you from A to Z through the process of establishing these agreements between the shareholders:

Step 1 Analysis of the existing written and oral agreements between the shareholders.
Step 2 Valuation of the company and/or the participation.
Step 3 Inventarisation, explanation and discussion of the possible scenarios for more liquidity with all parties involved.
Step 4 Achieving consensus and finalising (shareholder) agreements.

Our clients

  • Shareholders who want guarantees about the liquidity of their participation.
  • Executive managers and directors who wish to maintain a healthy relationship with shareholders, including the possibility of an exit.
  • Families looking for an “internal stock exchange” to keep the company in the family.
  • Lawyers, accountants or consultants looking for an expert in drafting agreements between shareholders.

Your guarantees

Deminor represents:

  • Total independence and an objective approach.
  • Strict confidentiality.
  • Acknowledged expertise and experience in corporate governance for more than 25 years.
  • Flexibility that allows us to adapt our interventions to each situation.
  • Transparent conditions described in an assignment letter.

Budget

  • An hourly rate agreed in advance, or a fixed budget for the entire assignment.
  • The possibility to define an indicative budget for every phase of the assignment, possibly also partly by means of a variable result-related fee (success fee).
  • A monthly invoice with a detailed overview of the services.

Our references

In respect of the confidential nature of most of our files, references are only available on request.

Click here for an overview of our interventions and testimonials of our clients

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Questions? Do not hesitate to contact us

Office Brussels: Tel. +32 (0)2 674 71 10

Office Gent: Tel. +32 (0)9 283 71 10

info@deminor.com