QUESTION

Im selling my company stock to my partner. How do you put a value on stock? Cash + Receivables + Equity + contracts. I own 37.5% he owns 62.5% we

Asked on Feb 02nd, 2014 on Business Law - Arkansas
More details to this question:
have to attain bonds to do some of the municipal jobs. We have apx. $650k in assets, with apx 250k equity, we have 2 contracts valued at a total of 350k plus reveivables and cash in bank.
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1 ANSWER

Appellate Practice Attorney serving New York, NY
Specific industries generally have specific formulae which are applied by experts to value their business.  For example, businesses in many industries are valued as a multiple of gross sales.  A stationery business might be valued at 5x gross sales, a grocery at 3x gross sales, etc.  Other businesses might use other formulae.  You should find an accountant who is knowledgeable about the industry to provide you with a value.  If there is a trade association in your industry, it should be able to help you find an expert valuator who can do the appraisal dheaply.
Answered on Feb 03rd, 2014 at 3:22 PM

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