I am a minority shareholder and am basically looking to sell out to my partner (a corporation). I know there has been a lot of discussion about valuing and selling WISPs over the years. It seems like the answers vary depending on equipment, customers, contracts, location, etc. The thing I see the most is selling for 1x, 1.5x, or 2x gross annual receipts, unless it is a failing company, in which case the number is dramatically lower.
The only real difference for me is that I own less shares than the other partner. Has anyone bought/sold minority shares of a WISP, and is there anything different about valuing that? I'm looking at selling back my shares and want to make sure they're getting valued correctly. I have proposed 12-months gross receipts * my percentage. They are pushing for net revenue or gross profit - which are both net of expenses or net of cost of sales. I've never seen a net number used before - my dad sold his aerospace company about 15 years ago and used 12-months gross receipts + cash on hand for his sale number. In addition to this number, there are enterprise customer contracts that have been signed but have not been fully deployed yet, and therefore are not reflected on the books - it seems like these should be added to the value as well. On top of that, I am a co-signer on a line of credit for the company, how should that be handled? Has anyone dealt with that? Thanks in advance for any input or advice you guys can provide. Nick
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