Valuation of a business

sjbrun

So based on the difference in the last 6 years, and from the 5k you invested you could reasonably ask for 8-9k back for your shares.

getmore4less

BartyBoy wrote: »

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

Should be filed and on-line.

You don't seem to have much of a clue about the business as a business, not that unusual for employees with a few shares in a business but a 20% owner you should be far more clued up.

There may be other stuff you are not aware of have you checked all the filings?

BartyBoy

getmore4less wrote: »

You don't seem to have much of a clue about the business as a business, not that unusual for employees with a few shares in a business but a 20% owner you should be far more clued up.

As mentioned before, many things are a secret here. We have a very aggressive director here, he tends to do things in his way and if we challenge him, he would scream and shout at us, a typical bully! In the first year of trading, he already told me to 'F' off!

BartyBoy

sjbrun wrote: »

So based on the difference in the last 6 years, and from the 5k you invested you could reasonably ask for 8-9k back for your shares.

How did you work out that figure please?

agrinnall

BartyBoy wrote: »

How did you work out that figure please?

The turnover and profit have both increased by 2/3 over 6 years, so the calculation is that the value of your shares would increase by the same amount.

BartyBoy

agrinnall wrote: »

The turnover and profit have both increased by 2/3 over 6 years, so the calculation is that the value of your shares would increase by the same amount.

I see, and what about the initial £5K investment, it turned to £24K profit in the first year and £40K profit in the 6th year, can I not take it into account please?

sjbrun

BartyBoy wrote: »

I see, and what about the initial £5K investment, it turned to £24K profit in the first year and £40K profit in the 6th year, can I not take it into account please?

It's all for you to negioate. You need to set up a meeting and talk to them. But the above would have been included in the dividend for that year so wouldn't be included in what you would sell for.

You just take the value of the business when you went in and the value of it now.

BartyBoy

sjbrun wrote: »

It's all for you to negioate. You need to set up a meeting and talk to them.

I doubt very much if there is a negotiation for me as per my previous comments about the other directors being aggressive and unreasonable (capped my salary and I am the one who earns the least).

sjbrun wrote: »

You just take the value of the business when you went in and the value of it now.

That is a plan and I can see we may end up in court in the end.

We were a bunch of workers who have been working together for nearly 2 decades. The last 6 years have really opened my eyes. It just shows how money can change some people's attitudes and behaviours.

gingerdad

i would say you're not in a great position, as the only people likely to buy out your shares are your co-directors. not much market value

but if your next profit is 200k then roughly work 600-800 thousand, but you need to get the company valued by an independent valuer.

could you not leave - keep your share holding and just get paid you dividends?

getmore4less

BartyBoy wrote: »

As mentioned before, many things are a secret here. We have a very aggressive director here, he tends to do things in his way and if we challenge him, he would scream and shout at us, a typical bully! In the first year of trading, he already told me to 'F' off!

If 3 out of the 5 of you don't like the way the business is being run as shareholders you have meetings and remove them from the post.