how is market price of shares determined in terms of private firms



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if i own 10% of shares in xyz firm. and i am divorcing my spouse and need value of my shares for compensation purpose how will i determine it

1 Answer(s)


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Thats an interesting example.

If you want to sell your shares in a private company, then first you have to make sure there is no clause in your termsheet that prohibits your from selling.

If thats clear then you approach the company to figure out if they want to buy back your shares. If that also fails then you approach external investors.

The price depends on what price the last round was done at and how the company has grown since then. This is more art than science.