
Fair value/buyout terms when exiting company - liz_capitan
What is market practice to ask for other shareholders to buy you out for total investment of $10M&#x2F;equity is 32-60% if debt is converted into common stock? Our equity is some preferred shares, some common. Additional investment - long-term debt convertible into common stock).
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jacquesm
There exist specialty services that value companies, this usually gives a
number everybody can agree on.

Another good strategy is to flip: first you ask the other shareholders how
much they want for _their_ shares, then you reverse the offer pro-rata. Hard
for them to argue your shares are worth less than theirs.

Good luck!

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liz_capitan
Thank you very much. Company already did valuation, it's worth $60M. I'm
wondering what is practice in the market considering these giving conditions
for small business.

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jacquesm
Well, cash is king. I would take quite a bit of a discount on a cash deal,
anything more complex I would advise you to get a lawyer involved that you pay
for yourself. That way you have at least a fair chance that you will be
getting quality and objective advice.

