not sure if this is the right place for this question, but there doesn't seem anywhere else...
i know this is a complicated subject, but briefly: i wish to sell my third of a stake in a small business i started with two partners a few years ago. i have no idea of the value (i know, the shareholders agreement says we should get a fair value every year but...) and don't really know where to start on negotiations. i know we could get someone to value it, but i do hope to work with these people in the future, so wanted to see if we could agree something before. the business is beginning to do well, get some recognition in its field and saw a 500% increase in income on between yr1 and 3.
any thoughts? thanks in advance. going out shortly so may not be able to respond immediately.
I would get it properly valued, either by your accountant or a specialist valuer. Isn't that the best way to come to an objective conclusion that is acceptable to all parties? Additionally, if the value is more than £10k HMRC may be interested as capital gains tax may be due.
Finally, there's a difference between valuing shares in a company or stake in a partnership and from your OP it's not clear which type of business it is.