A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • 5 years ago

I am in the process of buying back shares my consulting firm from my partner and am searching for information on how to value a closely held services firm. Any advice?

  • This Question is Closed
  1. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    This is an excellent book on the topic. Valuing Small Businesses and Professional Practices (McGraw-Hill Library of Investment and Finance) - Hardcover (Mar. 1, 1998) by Shannon Pratt, Jr., Robert Reilly and Robert Schweihs I recommend that you contact a business appraiser, however. The appraisal of a closely held business is complicated. To ensure that you pay a fair price, you may need the services of an expert. I appraise closely held businesses for a living. If you have more detail questions ask. If you need an expert please feel free to contact me.

  2. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Great I will take a look at the book... We are at an impasse because she wants to set the sale of her shares on a value based on prior 2-3 years EBITDA and I want to value based on future net cash flows. As a general rule, I was curious about generally accepted practices.

  3. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    I propose you to evaluate the business based on cash-flow starting from EBITDA.

  4. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.