I have a 50% shareholding in a Ltd business. I have now left the business to start a new career(2 weeks ago). Due to unforseen circumstances my fellow director was not available to agree transfer of shares before i left. Current business performance. Retained profit €80k. some bad debts to consider (-10k). Break even last two years. Difficult trading conditions due to market sector.
My fellow director has proposed the following
"Devalue the company to €21k under the following headings
Net Asset Value
Less
Market Value adj on Fix Assets
Market Value Adj on Stock
Bad Debt provn on debtors
Revised Company Value
Apply 50% Minority Discount Adj (30%) (9)
NET VALUE
therefore i get 50% of new valuation.
I have a good relationship with my fellow director and i want the company to continue. The fact is the company makes little to no profit and turnover is approx €500k is not great.
I am aware the companies valuations can differ depending on who is looking at them but am i getting short changed here?
Also i am still a personal guarantee on the company overdraft & c/c's. i know this is crazy but it couldn't be sorted before i left. The bank will not let the current director sign off on the guarantee on his own. Is this normal?
I would really appreciate any comments how to proceed.
thanks,
My fellow director has proposed the following
"Devalue the company to €21k under the following headings
Net Asset Value
Less
Market Value adj on Fix Assets
Market Value Adj on Stock
Bad Debt provn on debtors
Revised Company Value
Apply 50% Minority Discount Adj (30%) (9)
NET VALUE
therefore i get 50% of new valuation.
I have a good relationship with my fellow director and i want the company to continue. The fact is the company makes little to no profit and turnover is approx €500k is not great.
I am aware the companies valuations can differ depending on who is looking at them but am i getting short changed here?
Also i am still a personal guarantee on the company overdraft & c/c's. i know this is crazy but it couldn't be sorted before i left. The bank will not let the current director sign off on the guarantee on his own. Is this normal?
I would really appreciate any comments how to proceed.
thanks,