Valuation of a business

BartyBoy

getmore4less wrote: »

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.

There is no other investors, just 5 of us. Three directors signed up for executive directors or managing directors or something like that 6 years ago. My understanding is they will make the key decisions for the company but I don't quite know what is classified as key decision. Two of them have told me I am not getting a pay rise and they are the ones who have been earning £6k and £9k more than me every year in the past 6 years.

We employ 3 staff currently. Regarding the assests and IP value, I have no idea at all. Many things in the company seem to be a secret.

BartyBoy

theoretica wrote: »

And what was it 6 years ago?

The last account report was generated in July last year.

getmore4less

BartyBoy wrote: »

There is no other investors, just 5 of us. Three directors signed up for executive directors or managing directors or something like that 6 years ago. My understanding is they will make the key decisions for the company but I don't quite know what is classified as key decision. Two of them have told me I am not getting a pay rise and they are the ones who have been earning £6k and £9k more than me every year in the past 6 years.

We employ 3 staff currently. Regarding the assests and IP value, I have no idea at all. Many things in the company seem to be a secret.

That should be in the accounts.

getmore4less

BartyBoy wrote: »

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

How much of that is dished out in dividends.

motorguy

theoretica wrote: »

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?

Thats what i would be doing.

I think that would very much put the cat among the pigeons if they werent otherwise playing ball.

Having said that, if you're getting - presumably healthy - dividend payments every year, then is there really a problem?

I was an IT Director for a largish privately owned company (1500 employees) and the directors salaries varied by maybe as much as £35,000.

BartyBoy

getmore4less wrote: »

How much of that is dished out in dividends.

80K if my calculation is right.

getmore4less

BartyBoy wrote: »

80K if my calculation is right.

There should be cash reserves that will be one asset you own a share of.

Have you been checking the accounts for the last 6 years?

BartyBoy

getmore4less wrote: »

There should be cash reserves that will be one asset you own a share of.

Have you been checking the accounts for the last 6 years?

Luckily I have kept a copy of the accounts for the last 6 years.

agrinnall

BartyBoy wrote: »

The last account report was generated in July last year.

You're not answering the question, theoretica wants to know what the figures were 6 years ago when the company first traded.

BartyBoy

agrinnall wrote: »

You're not answering the question, theoretica wants to know what the figures were 6 years ago when the company first traded.

Sorry, I think I have mis-read the question. 6 years ago, the turnover was just over £300K and the net profit was around £120K.