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Estimating the net worth of your company

Josh_10
Member Posts: 786
Has anyone had to estimate the net worth of your company? We are aquiring a failing electical contractor and we are going to offer the "talent" stock in our company as payment.
Thanks in advance.
Thanks in advance.
0
Comments
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Since they are failing company...
Simply take the tangible assets (depreciated cars, trucks, and tools at present blue-book value, any property they may own - less mortgage(s) outstanding on same, 50% of whatever inventory is owned; subtract all the debt due at full face value and half to three questers of the A/R less all taxes due etc. and you should come up with a decent number of "worth."
A business in "failed decline" mode has no value for "good will." In fact, the good will may be a negative!
Tread with extreme caution. A failed coin operated laudromat is as good a match as an electrical contractor. Kindred trade? Look again.0 -
Thanks Ken, Actually it is the net worth of our company that I am after. See the electricians are talented, just not good business men. We already know how much we are aquiring their company for. Basically we are just buying their tools, and 1 truck.
So I need to give 1 guy some stock in our company as payment. Very little percentage of company but I am finding it hard to put a value on our business. Our CPA hasn't been much help.0
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