Questions & Answers
Selling a share in a business without knowing its value
I started a business with a partner (50/50 shares) who is managing the business, supported by my contributions to marketing and operations.
After 1 year of business, I'm still not getting clarity concerning the collections and payments, etc. Money is often collected by my partner in cash mode instead of the bank.
My partner keeps saying stay away from this and just focus on marketing and operation. Now I have decided to quit this business, but since there is no proper account, I'm not sure how much I should sell my 50% shares for.
Kindly advise me on how can I come out of this business and how much I should sell my shares for!
Dear questioner,
You can take help from an auditor to get the valuation done for the company. Based on the valuation, either you can claim your profit in court or take the profit and sell the shares so that you are not in loss.
Kindly contact us via phone for a detailed discussion or write us an email for further assistance.
Hi,
I trust that you are doing well.
In order to determine the value of your shares, we will need to acquire further information related to the company, the income it is generating and the share capital as per the MOA (Memorandum of Association).
By refusing you access to the financial side of the business, your partner has withheld crucial information from you.
For further information, and the best steps forward, contact us via phone or email.
You should take the auditor's support to get the firm's valuation done.
On the basis of your valuation, you can either claim your profit in court.
Please contact us by phone or email.
