Legal service for foreign clients
Business & Share Valuation in Thailand
A number you can defend to buyers, sellers, banks, and the Revenue Department.
Quick answer
Thai valuations rest on three approaches: discounted cash flow, comparable transactions, and net asset value. The right one depends on purpose — a below-market share transfer between relatives can attract a Revenue Department assessment. A defensible report states every assumption, the discount rate used, and the reasoning behind any marketability discount.
From THB 45,000 — From THB 45,000 per report; litigation-grade reports quoted separately · Report within 3–5 weeks
Who this is for
- Owners preparing a sale or new partner
- Shareholders disputing share price
- Families planning succession
- Businesses needing a value for lending
What you receive
- A valuation report with a defensible value range
- A financial model you can flex yourself
- Sensitivity analysis on the key assumptions
- Comparable transaction evidence from the same sector
Documents to prepare
- Three to five years of statements plus the latest period
- Revenue forecast and capital expenditure plan
- Shareholding structure and any shareholder agreement
- Key asset schedules and encumbrances
How it works
5-step process
- 1
Fix the purpose and basis of value
A real sale, a family transfer, and a dispute each use a different basis.
- 2
Normalize the financials
One-offs and owner's personal costs are removed.
- 3
Apply the methods
At least two methods are run and cross-checked.
- 4
Stress the assumptions
Growth and discount rates are flexed to frame the range.
- 5
Deliver and defend
We present the report to buyers, banks, or the court when needed.
In depth
Business & Share Valuation: what foreign clients need to know
What is this business worth has no single answer, because value shifts with the purpose it serves. The figure used to negotiate a share sale to an investor differs from the one used to divide an estate among siblings, and differs again from one that must withstand explanation to a court in a shareholder dispute. A usable valuation therefore states its purpose, its valuation date and every assumption, so a reader can retrace it.
Three approaches, and when each one fits
The income approach discounts the cash the business will generate back to a present value, and suits operations with predictable recurring revenue. The market approach benchmarks against transactions in comparable businesses, and works where enough comparables exist. The net asset approach fits asset-heavy companies and businesses winding down.
In practice we always run at least two approaches and explain why they diverge. A range from two methods carries more negotiating weight than a single unsourced number, because both sides can see the boundaries of legitimate disagreement.
Discount rates and marketability discounts in a Thai context
The discount rate for a mid-sized Thai company must reflect the risks actually present: dependence on a handful of large customers, dependence on a founder who makes every decision, and input-cost volatility. We build the rate up component by component, so a reader can contest only the part they dispute.
Shares in a private company with no secondary market attract a marketability discount, and a non-controlling stake attracts a minority discount. Both move the number materially, so both must be justified with reasoning and references rather than habit.
Valuations that must hold up in litigation and estate division
When a valuation is used in litigation, its author must be ready to explain the method to the court. Credibility therefore rests on traceability: every figure must tie back to a source document, whether filed accounts, customer contracts or bank statements.
In estates that include family-company shares, conflict usually arises because the heir running the business and the heirs who do not see value differently. A report separating the profit attributable to management effort from the profit attributable to the company's assets genuinely reduces the dispute.
Cost structure: government fees vs professional fees
| Item | Official fee | Professional fee | Note |
|---|---|---|---|
| Indicative valuation for internal decisions | No government fee | THB 45,000–90,000 | Delivers a range and key assumptions, without the full report for external parties |
| Full valuation report for negotiation or fundraising | No government fee | THB 120,000–350,000 by complexity of the group structure | Runs at least two approaches with sensitivity analysis on the assumptions |
| Report for litigation use and expert explanation in court | Court fees relating to expert evidence as directed in the individual case | From THB 180,000, with attendance to give evidence charged per hearing | Requires a full audit trail at every layer to withstand cross-examination |
A founder selling a partial stake to a new investor
Situation: The investor priced the stake on a broad industry multiple, unadjusted for the company's own characteristics.
What we did: We ran the income and market approaches together and showed that long-term contracts with key customers put risk below the industry median.
Outcome: The agreed price per share came in materially above the opening offer, and the investor accepted because every line was traceable.
Dividing family-company shares among four heirs
Situation: The heir managing the business saw a low value; the heirs outside it saw a figure several times higher.
What we did: We separated the return on management from the return on assets and offered the managing heir a staged buy-back option.
Outcome: Agreement was reached without litigation, and the business continued without selling its core assets.
When to act, and when waiting is fine
Start now when an event needs a reference figure: taking in an investor, dividing an estate, or a shareholder dispute
A figure prepared before conflict escalates is accepted far more readily than one commissioned by a single side mid-quarrel.
Waiting is fine if the revenue model just changed and no results show in the accounts yet
Wait for two or three quarters of post-change results; the projection then carries weight and is harder to contest.
FAQ
Frequently asked questions
Can shares transfer to a child at par?
It is possible but risks a market-value assessment; keep a valuation report on file.
Can a loss-making business be valued?
Yes — net asset value or forward potential replaces current earnings.
Is the report court-admissible?
Yes, when prepared by a qualified valuer with full assumption disclosure.
How does business valuation differ from property appraisal?
An appraisal answers what the land or building is worth; a business valuation answers what the whole earning capability is worth, which is often above or below the sum of the assets.
Can a loss-making business be valued?
Yes, using net assets as the base together with the value of the customer base, licences or rights the company holds.
How long does it take and what should we prepare?
Usually two to five weeks. Prepare three to five years of accounts, the main customer list, key contracts and management's own projections.
Can the report be filed with a bank for credit purposes?
It can support an application, though banks apply their own collateral criteria, so check the lender's requirements before scoping the work.
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Written by: Thai Law & Accounting Services — attorneys and licensed accountants
Reviewed by: Reviewed by a Notarial Services Attorney registered with the Lawyers Council of Thailand.
Last updated: 2026-08
Information as of August 2026. Government fees and processing times change — verify with the relevant agency before acting, or let our team verify for you.