Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: lmr

First, how are you computing its worth? Is it your impression of a future cash flow or the reality of the current situation?


2 posted on 11/10/2006 8:01:30 PM PST by ConservativeMind
[ Post Reply | Private Reply | To 1 | View Replies ]


To: ConservativeMind
I have been told by others in the industry that companies like ours will sell for 15-16 months gross revenue. This adds up to about 5.5 million dollars, once debt is deducted, it sits at 4.75 million. My percentage of ownership is 4 percent. 4 percent of 4.75 million gives an approximate value of $190,000. A discount for lack of marketability would not be allowed by case law because I am selling the shares to the other members, not an outside party (which would be it's own negotiation, anyway.)

There was one industry insider that told me that they would purchase a company like ours using EBIDA. This would still give the company a market value of 4.5 million, which is close to the other method. They may be interested in purchasing my shares, but they would rather buy the whole damn company.

I am in a financially desperate position. I have almost given up, this I feel, is my only shot.
5 posted on 11/10/2006 8:16:45 PM PST by lmr (The answers to life don't involve complex solutions.)
[ Post Reply | Private Reply | To 2 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson