The Intent
You are facing a trigger event, but the agreement is silent or vague on valuation. You want to know what happens next and how exposed you are.
How I Solve It
In the absence of a defined method, courts default to fair market value. I apply the 25 Factors Affecting Business Valuation to establish value under arm's-length assumptions, emphasizing Factor #4: Return on Investment, Factor #5: Liquidity, Factor #24: Risk, and Factor #25: Opportunity. The 5 Senses Inspection Report provides evidence of actual business behavior, which becomes critical when disputes arise.
Experience
10 or 15 years of business owner-operator experience is required to build the gut-brain axis — as pilots, surgeons, and business valuators should have before they take people's lives and financial lives in their hands. See my Experience page for more details.
Why is this so important to the question: What happens if a shareholder agreement has no valuation method?
When an agreement is silent on valuation method, the absence of structure creates maximum exposure. Courts will fill the gap — but only with valuations they trust. A valuator without deep owner-operator experience will produce a report that looks technical but reads as guesswork under cross-examination. The gut-brain axis is what gives the valuation narrative credibility: the ability to explain why a number is right, not just what formula produced it.
The Result
You receive a valuation that courts and mediators can rely on, helping resolve uncertainty and move the parties toward resolution.