Sherwood onmanagement. How much is your company worth? Effective tips on buying out a minority shareholder

Industry experts provide several significant tips for acquiring minority stakes in companies. A number of general methods are available that can be used to generate an appropriate price for such a stake. A price can be generated by multiplying a credible buyer's offering price by 24% when the company is profitable. This virtual buyer's price can be estimated by multiplying the net annual income by a factor of 2 to 10. The price for a marginal company will be 24% of its cash value after being liquidated. The minority shareholder can urge a company to postpone its sale till such time as the potential transaction is complete when it is planning a merger, or sale.