Hi,
A friend has a 1/4 share in an Estate Agents business. He wants to sell his
1/4, either to the other partners or on the open market.
Q. How do you value a business in such circumsances ?
1/4, either to the other partners or on the open market.
How to Value a business
Feb 19, 2006
1 Replies
1/4, either to the other partners or on the open market.
Valuing a business is difficult. You need to make some fundamental assumptions regarding future cash flows and the cost of capital for the company. The financial structure of the company will also be important, and there are also assumptions that need to be made regarding tax. If you get any of these wrong, it can severely affect the accuracy of the valuation. I would recommend talking to an accountant who may have some corporate finance experience.
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