Notifications
Clear all
We are planning on bringing in a partner into our business and was wondering how much they should pay into the business to get a share of the company. Are there any benchmarks you can use? Any thoughts and ideas?
Topic starter
Posted : 10/02/2007 12:44 pm
Re: Partnership Share
Because it is difficult to determine the worth of a small business - because there are no perfect benchmarks, you may want to have a term in your document that says that they will buy 1 share for X but they can also buy the other partners shares for the same amount then that way they should get a fair valuation of the business
Posted : 12/02/2007 12:32 pm
Re: Partnership Share
If you have a partnership agreement it should describe how the profits are allocated, you could use the same type of formula and make it a multiple of last years profit.
Posted : 14/02/2007 11:06 am
Re: Partnership Share
The best thing you can do is go to a site like Free P/L Report - Industry Eye and get a free P&L for your industry and benchmark your business against that P&L. The partner should pay a multiple of the net income or revenue.
Posted : 17/02/2007 11:08 am
Re: Partnership Share
This maybe a little off topic but I would make sure you have a clause that clearly articulates how to exit the business so many owners - us included focused too much about how to enter the business and not about how to exit it.
Posted : 19/02/2007 1:23 pm
Forum Statistics
6
Forums
5,502
Topics
35.8 K
Posts
13
Online
22.2 K
Members
Latest Post: why does salesforce best CRM ? Our newest member: MichaelaPunda Recent Posts Unread Posts
