I own 50% of a small business that does around 90,000 in revenue per year. After expenses, it’s closer to 70-75,000 for the total business net income.
If I wanted to sell my half to my partner, what would be a reasonable offer that I should accept?
I own 50% of a small business that does around 90,000 in revenue per year. After expenses, it’s closer to 70-75,000 for the total business net income.
If I wanted to sell my half to my partner, what would be a reasonable offer that I should accept?
If net income is defined as EBITDA, I would peg preliminary value at around $140K.
As for $30K assets, assume liquidation rate of 15 percent or $4,500.
This puts your half at $72,250.
Other factors that may affect calculation are financial history, type of business (service, product class), industry strength, business location, capital analysis, competition, etc.
Inexpensive way to obtain relatively accurate estimate is to engage business broker or consultant that has experience in your industry preparing valuation letter reports for your type of business.
Otherwise, you are looking at $4,500 or so for summary appraisal that could be used for legal purposes such as estate planning, court, partnership agreements.