Valuation of BV Shares in DGA Divorce in Amsterdam: Methods and Valuations
In Amsterdam, where many DGAs (Directors-Major Shareholders) run their SMEs along the Zuidas or in the Jordaan, the value of BV shares often forms the biggest stumbling block in divorce proceedings. According to Article 1:141 DCC, the value increase during the marriage must be divided via periodic equalisation. Three common valuation methods are discounted cash flow (DCF), multiples of EBITDA, and net asset value, often applied in cases before the Amsterdam District Court.
The DCF method calculates future cash flows with a discount rate of 8-12%, tailored to risks such as the Amsterdam real estate market or tech startups. Multiples vary by sector: 4-8x EBITDA for typical Amsterdam SMEs, such as hospitality in the Pijp or creative agencies in Oost. For goodwill, the formula 'average profit x 3-5' applies, taking into account local competition. Registered accountants or valuation experts from Amsterdam, such as those affiliated with the NBA, carry this out with reporting for the family judge.
Tax considerations in transfer: the Income Tax Act 2001 may trigger cessation levy on the FOR. Marital agreements with cold exclusion provide protection but require equalisation of asset growth. In Amsterdam practice, proceedings often start with summary proceedings at the Amsterdam District Court for provisional valuation to prevent blockages. Upon agreement, share transfer follows via a notary in the city centre, with articles of association amendment and possible registration with the Amsterdam Chamber of Commerce.
Tip: have both parties appoint their own valuer, preferably with knowledge of the Amsterdam market, for maximum objectivity and recognition by the court.