If the company is doing well, shoot for 1.5. You're going to want to push higher and the buyers will push lower. Start high.
Josh Luthman Office: 937-552-2340 Direct: 937-552-2343 1100 Wayne St Suite 1337 Troy, OH 45373 On Mon, Sep 3, 2012 at 1:25 PM, Nick W <[email protected]> wrote: > It shouldn't, but there are more experienced people than I, so that's why > I asked. That's exactly what I proposed with Value = 12mo gross receipts. > > > On Mon, Sep 3, 2012 at 10:17 AM, Josh Luthman <[email protected] > > wrote: > >> Why would it matter how big your stake is? Value * (% stake). >> >> I would get my name off the line of credit if I'm not going to have any >> of the benefits. Call the bank. >> >> Josh Luthman >> Office: 937-552-2340 >> Direct: 937-552-2343 >> 1100 Wayne St >> Suite 1337 >> Troy, OH 45373 >> >> >> On Mon, Sep 3, 2012 at 1:15 PM, Nick W <[email protected]>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 >>> >>> _______________________________________________ >>> Wireless mailing list >>> [email protected] >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> >> >> _______________________________________________ >> WISP mailing list >> [email protected] >> http://lists.wispa.org/mailman/listinfo/wisp >> >> > > _______________________________________________ > WISP mailing list > [email protected] > http://lists.wispa.org/mailman/listinfo/wisp > >
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