There is no set formula. This is a negotiation process you will have to
deal with your other partners about. They can't "force" you out, and you
can't demand a certain amount.
You would ask for a number (start high), and they will counter with a
number (low), and you go back and forth until you both reach a number
everyone is happy with. Think of it as buying/selling a house... your
shares are worth what they are willing to pay for them.
Travis
Microserv
On 9/3/2012 11:15 AM, Nick W wrote:
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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