Valuation of BV Shares in DGA Divorce in Westland: Methods and Valuations
In Westland, the heart of Dutch greenhouse horticulture with numerous family businesses and BVs in greenhouse construction and floriculture, the value of BV shares often forms the biggest stumbling block in a DGA divorce. Under Article 1:141 DCC, the value increase during the marriage must be divided through periodic settlement. Three common valuation methods are: discounted cash flow (DCF), multiples of EBITDA, and net asset value, adjusted to the volatile market prices of flowers and vegetables.
DCF calculates future cash flows from greenhouse operations with a discount rate of 8-12%, taking into account risks such as energy prices and crop yields in the Westland region. Multiples vary by sector: 4-8x EBITDA for SMEs in horticulture, with goodwill based on 'average profit x 3-5' for export-oriented BVs. Registered accountants from Naaldwijk or Monster, or specialized valuation experts, carry this out with reporting for the court in The Hague.
Tax considerations: upon transfer of shares, the Income Tax Act 2001 applies with possible termination levy on FOR, particularly relevant for Westland BVs with high subsidies. Marital agreements with cold exclusion protect the entrepreneur but require periodic settlement of asset growth due to seasonal fluctuations. Practice examples from Westland show summary proceedings before the district court judge for provisional valuation to prevent blockages during harvest seasons. After agreement, share transfer follows via a local notary in Poeldijk, with adjustment of articles of association and attention to family business succession.
Tip: have both parties appoint their own appraiser from Westland for objectivity and knowledge of the local horticultural economy.