Valuation of a business

SamsReturn

It all makes sense, i'm sure everyone understands the position you're in.
I suppose it's a bit like when a couple split up and one is refusing to sell the house. I'm sure legally there must be someway to force a sale if the worst came to the worst.

BartyBoy

SamsReturn wrote: »

I suppose it's a bit like when a couple split up and one is refusing to sell the house. I'm sure legally there must be someway to force a sale if the worst came to the worst.

That example has simplified my situation, an unworkable marriage.

theoretica

Is there anything in the agrement to stop you still owning your 1/5th (and drawing equal dividends as a partner) but not working or drawing a wage? I imagine the other partners might not be happy with this - so suggesting it might be a bargaining point?

getmore4less

As an equal shareholder you have the same rights as the others.
You should having shareholder meetings and be publishing accounts here.

Who has agreed the pay levels someone must have been given the authority to set pay by the shareholders.

valuing if often described in terms of earning multiples, although you may be making 0ver £200k how much of that is paid out to make the earnings of employees competitive?

to an independent non employee shareholder there may not be much left to share out.

27cool

You haven't actually explained how you came to be getting a lower salary than the others. If you all started on the same amount. I would have thought that the proportions of wages should have been worked out in the original agreement.

BartyBoy

27cool wrote: »

You haven't actually explained how you came to be getting a lower salary than the others. If you all stared on the same amount. I would have thought that the proportions of wages should have been worked out in the original agreement.

We started at different salaries in the beginning. We had a management buyout from the old boss 6 years ago. Two directors were already earning £6k & £9k more due to their skills and experience from the old company. I accept the fact that I was not as competent as I am now so my salary was a lot less, but over the last 6 years or so, I have built up a lot of skills, experience and confidence which make me do a hell of a lot more work now than 6 years ago. I would say I am more senior to my job. My roles and responsibilities are as equal as the others as far as I am concerned. This is where the director number 4 demanded a pay rise cos he was just like me, we had the same salary in the last 6 years. He received a £5k pay rise 3 months ago, and when I asked for a pay rise a month ago, I got rejected AND was told my salary was capped. So now I am earning the least between 4 of us.

getmore4less

Are there any other investors?

who is deciding you can't have a pay rise if you are equal share holders?

Any assets or IP that has value?
Has that changed in the last 6 years.
Any goodwill?
Do you employ people

if you are basically a shell to employ people to provide a service that earn similar to what you take our between you then there is little real value in the actual company.

Think IT contractor all the value is in the person.

theoretica

So 6 years ago the company was worth £25k? How did the profit and turn over compare?

BartyBoy

theoretica wrote: »

So 6 years ago the company was worth £25k? How did the profit and turn over compare?

Based on the last account report, we have made just over £500k turnover and £200k profit.

theoretica

BartyBoy wrote: »

Based on the last account report, we have made just over £500k turnover and £200k profit.

And what was it 6 years ago?