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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2608
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I wish to sell my 50% share in our business. how do I price

Customer Question

I wish to sell my 50% share in our business. how do I price the business. We made $280,000.00 pre tax profit
Submitted: 6 years ago.
Category: Finance
Expert:  CGCPA replied 6 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

Solely from the information you have presented, I cannot give you an accurate response. There are many factors besides pre tax profit which determine the value of a business. The type of business will be a major factor. Other factors will include market place stability/growth/decline, financial strength of the business, and the critical functions and value thereof of the selling owner.. One key to remember is that in a 50/50 owned business, if you are selling to the other owner, the fair market value would require that either of you be willing to either pay or receive this price.

Perhaps the best option for you is to consult with several local business brokers and read through any trade journals for similar businesses for sale.