Question

How can I find the correct price for selling my small business to a partner?

Answer 1

Figure out what you and the partner can agree upon. There is a variety of valuation methods, but they will be of no use if the seller feels the price is too low or the buyer feels it is too high...

Answer 2

What was the net worth of the business when you and the partner bought it? Over the years, since it was first mutually purchased, what is the over-all total worth of the business? If I were in your shoes, I would add the total of the answer to both questions I asked. Now, so that you make a profit from that total, double it.

Answer 3

Figure the current value of the physical assets of the company (equipment, inventory, real estate), and determine the profitability of the company. The net worth of the company should be a combination of the physical assets plus a percentage of the future profits. You may need to talk to your accountant or an attorney who specializes in business to determine that percentage.

Answer 4

put it up on ebay and se what it sells for then see of its somewhat what you think is going to sell for.