How do I work out full market value of shares in my company? It has been around for > 10 yrs, has retained profit and existing clients. I'm investigating alloting some new shares, but understand they would need to be purchased at 'full market value' by the person concerned.
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Valuing shares in Ltd company
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Wouldn't the value really depend on the person you are selling them to. You could argue a very wide range depending on the outcome you want. If it's to sell to family members/friends you could quite easily manipulate the numbers down. If it's to a genuine investor you've got a host of less tangible factors to boost the value.
Care to share the relationship first so we can give you a better answer based on circumstance?'CUK forum personality of 2011 - Winner - Yes really!!!! -
aOriginally posted by northernladuk View PostWouldn't the value really depend on the person you are selling them to. You could argue a very wide range depending on the outcome you want. If it's to sell to family members/friends you could quite easily manipulate the numbers down. If it's to a genuine investor you've got a host of less tangible factors to boost the value.
Care to share the relationship first so we can give you a better answer based on circumstance?Comment
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Originally posted by starstruck View Posta
It would be the family members/friends category. They would buy the shares with their own money at full market value and any dividends they receive would never make they way back to me.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by starstruck View PostHow do I work out full market value of shares in my company? It has been around for > 10 yrs, has retained profit and existing clients. I'm investigating alloting some new shares, but understand they would need to be purchased at 'full market value' by the person concerned.Comment
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This is going to be a very long thread. A two line question to ask about an extremely complicated situation that is highly dependent on the details, of which there are non.
Always makes me think someone knows what they are trying to do is a no no when they hide so much information.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by Old Greg View PostAre you a typical '1 man band' contractor Ltd, or is it bigger than that?Comment
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Originally posted by starstruck View PostIt’s bigger than one man band. We have hundreds of clients and it doesn’t require me working to make money, I could in theory retire and it would still operate. I’m just after a way of coming up with a fair valuation of shares. I’ll ask my accountant also, but he’s on hols at moment. Thought there might be some industry standard multiple of earnings or something.Blog? What blog...?Comment
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Originally posted by starstruck View PostIt’s bigger than one man band. We have hundreds of clients and it doesn’t require me working to make money, I could in theory retire and it would still operate. I’m just after a way of coming up with a fair valuation of shares. I’ll ask my accountant also, but he’s on hols at moment. Thought there might be some industry standard multiple of earnings or something.Comment
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Originally posted by starstruck View PostIt’s bigger than one man band. We have hundreds of clients and it doesn’t require me working to make money, I could in theory retire and it would still operate. I’m just after a way of coming up with a fair valuation of shares. I’ll ask my accountant also, but he’s on hols at moment. Thought there might be some industry standard multiple of earnings or something.
Are the people you're selling shares to going to be working in the business? If so then I suggest you seek legal advice and get some proper contracts drawn up, including 'what to do if someone dies, what to do if you fall out, what to do if the company goes bust, etc. etc.See You Next TuesdayComment
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