Wetdufflecoats
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Thanks very much for the reply...much appreciated. I currently work for the company and was interested in having some skin in the game but its just the working out of the price of the shareholding which is proving difficult.I don't think you will find this easily in the public accounts
In any case, it is irrelevant - what matters is what you think a small shareholding is worth. This would normally be based on expected future dividends and/or capital gains if the company is sold in the future
Not sure that a small shareholding in a private company is wise - as you will have little or no say in the management
What does it do and what are the revenue and profit numbers?Thanks very much for the reply...much appreciated. I currently work for the company and was interested in having some skin in the game but its just the working out of the price of the shareholding which is proving difficult.
Engineering company...turnover of about 4million with an estimated profit of c. 600kWhat does it do and what are the revenue and profit numbers?
Real back of the envelope stuff. Assuming nothing silly in the profit number (e.g. €4m into the owner’s pension and his wife’s), 100% is probably worth €5m-ish, and you’d apply a discount to a minority shareholding. So maybe €300k for 10%?Engineering company...turnover of about 4million with an estimated profit of c. 600k
Real back of the envelope stuff. Assuming nothing silly in the profit number (e.g. €4m into the owner’s pension and his wife’s), 100% is probably worth €5m-ish, and you’d apply a discount to a minority shareholding. So maybe €300k for 10%?
Or they can just get old and out of touch and not keep up with the market or technology and wreck the place before they die. A lot of businesses are a reflection of the founders personality, ability and ego. It can be hard to let go.You might get on great with the founder today. But in 10 years, maybe the founder's son comes into the business and wants you out.
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