I have a business in which one partner wants to leave & wants me to buy him out. He has minority shares of the company. I will continue with this business after he leaves but want to know what the fair value is for his shares. How do I go about determining what I owe him for buying him out?
2007-01-07 10:52:18 · 2 answers · asked by k_jm779 1 in Business & Finance ➔ Small Business
Contact a business broker who might be able to handle the transaction as well as offer sound protection legally for you. Also he will be able to assess and appraise the value of the business for you. Be sure to have an attorney to draw up the necessary sale, release of liability confidential agreement papers. You wouldn't want things to get ugly later if your company's profit's should soar. Good luck!
2007-01-07 11:35:21 · answer #1 · answered by BellaDonnaRev 3 · 0⤊ 0⤋
you can check by identifying the Capital Investment made by both of you, your paid up capital. Then there is the Turnover the company made, the profit earning per share for the directors. From there you can compute the value of the company and whether do u need and how much to if you decide to buy out his share.
2007-01-07 11:55:02 · answer #2 · answered by iskandar99 1 · 0⤊ 0⤋