My late father worked in management for a privately owned company for 20 years. During that time the company gave him stock in the company. Now here we are 30 years later and my mother still holds the stock and has received dividends over the years. The stock is not publicly traded.

My mother recently received a letter from the current CEO offering to buy her shares of stock. She has no way of knowing the true value of the stock. All of the old timers that my father and mother knew have all passed away, so she can't even ask anyone to try to get some insight about the company.

They are a regional manufacturer that I know has a good niche in the industrial and marine industry along the Gulf Coast. I'm guessing that there may be negotiations happening about the company being bought out by one of there national competitors. And that is the reason why the CEO is trying to buy shares.

Is there a way to determine the value of the shares and evaluate if the offer is a fair one?

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Posted by notiger1997

Metairie

Member since May 2009

61595 posts

Posted on 11/21/24 at 5:04 pm to doublecutter

I’m assuming she was given an amount and someone to contact if she has questions? If so, maybe you could call the company for her.

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Posted by ApexHunterNetcode

Member since Aug 2023

598 posts

Posted on 11/21/24 at 7:37 pm to doublecutter

Request their most recent 409a valuation. That will give you the latest 3rd party valuation and ask about future plans for the company.

As a shareholder, you do have certain information rights even in a private company. Make sure you have the agreements to reference, or ask for copies.

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