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LLC Forced Buy-Out Pits Fair Value Against Fair Market Value Against Power to Amend Operating Agreement

Farrel Fritz

The Repurchase Option uses a formula-based Repurchase Price based on a market-derived multiple of 8X EBITDA and other adjustments, less a 20% minority interest discount a/k/a discount for lack of control (DLOC) and a 20% discount for lack of marketability (DLOM). In 2014, Daniel approached Adina about purchasing her interest.

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Valuation Purposes: Selling your Business

BV Specialists

One of the most essential steps in the selling process is to obtain an independent valuation of your company so you can understand the fair market value of the business as a whole, as well as the underlying tangible assets and goodwill.

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Determining a Business Asking Price

Peak Business Valuation

The Valuation Process for Determining a Business Asking Price To set a business asking price, a valuation expert calculates the fair market value of your small business. The most common valuation methods for setting a business asking price are the market approach, the income approach, and the asset approach.

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Business Valuation for Buying an Automobile Wholesale Business

Peak Business Valuation

This analysis helps the business appraiser determine the fair market value of the automobile wholesale business you are considering. See Valuing an Automobile Wholesale Business for additional insights. Some common automobile wholesale valuation multiples are SDE, EBITDA, and REV multiples.

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Business Valuation for Buying a Fencing Business

Peak Business Valuation

These steps help valuation experts calculate the fair market value of a fencing business. Understanding the fair market value of a fencing company can assist you at various stages throughout the purchase process. You can leverage these insights to negotiate a fair purchase price for a fencing business.

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Business Valuation for Buying a Painting Business

Peak Business Valuation

This process helps valuation experts calculate the fair market value of a painting business. Understanding the fair market value of a painting company can help you at various points throughout the purchase process. This helps valuation analysts accurately calculate the painting business’s fair market value.

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Business Valuation for Buying a Machine Shop

Peak Business Valuation

Business appraisers can then determine the fair market value of a machine shop you are considering. Understanding the fair market value of a machine shop can help you navigate the purchase process and prepare to operate the business. For more details, check out How to Value a Machine Shop.