Legal Question in Business Law in Massachusetts

Inc Business Sale

I have 50% shares in a company that I formed and operated with my sister eight years ago. I did not pay as much attention to the financial side as I should have (stupid me). Before I knew it, the business as in debt. As a result, we have rarely been paid and I am now on the verge of loosing my house (not enough money to pay the mortgage). Now, my sister wants the business and says we can't work togeather. Granted the business is in debt, but we do have customers and receivables as well as assets. How should I find out the 'value' of the business and how do I proceed. Unfortuantley, I must keep in mind this is family and 'asking' too much could alienate family.


Asked on 4/17/03, 7:02 am

2 Answers from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Inc Business Sale

You should engage a qualified business appraiser to value the business, and you are entitled to 50% of that value if your sister is buying your interest. I can recommend someone if you need a referral. Best wishes,

LDWG

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Answered on 4/17/03, 8:38 am
Nance Lyons Law Office of Nance Lyons

Re: Inc Business Sale

If you have customers and a reputation in your business you have value. It's called "good will".

Valuing a business is difficult and can be done in many ways. You should consult a lawyer or a CPA

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Answered on 4/18/03, 2:20 pm


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