My wife entered into a partnership agreement with a friend approximately 18 months ago. They formed an LLC to provide in-home non-medical assistance to the elderly. It has gotten to the point that my wife no longer sees value in the partnership as she is essentially the driving force behind the business. Of course . . . her partner would likely disagree.
My wife would like to dissolve the partnership and feels that her only option would be to "buy-out" her partner. My question is: How would you determine a fair value of the business in order to make an offer? I know my wife would not want to "insult" her partner, nor would she want to offer more than it is worth.
Each client signs a care agreement but there is no "long term" contract to place a value upon. At any time, a client could decide that services were no longer necessary and simply walk away. Each of the partners takes approximately $500/week out of the business, but that amount is subject to change. At this point, they have annual revenue of approximately $150K per year, prior to paying themselves, their care givers, taxes, etc.
Any information you could provide regarding an equitable approach to ending this partnership or any other options that might be available to my wife would be appreciated.
Thank you in advance for your assistance.
My wife would like to dissolve the partnership and feels that her only option would be to "buy-out" her partner. My question is: How would you determine a fair value of the business in order to make an offer? I know my wife would not want to "insult" her partner, nor would she want to offer more than it is worth.
Each client signs a care agreement but there is no "long term" contract to place a value upon. At any time, a client could decide that services were no longer necessary and simply walk away. Each of the partners takes approximately $500/week out of the business, but that amount is subject to change. At this point, they have annual revenue of approximately $150K per year, prior to paying themselves, their care givers, taxes, etc.
Any information you could provide regarding an equitable approach to ending this partnership or any other options that might be available to my wife would be appreciated.
Thank you in advance for your assistance.
