Is there an easy formula for valuing a tutoring business so one partner can buy out the other?
My wife started an in-home tutoring brokerage with another partner. They want to dissolve the relationship, but my wife will maintain the business. The company has gross revenues of about $150,000 a year, but I don't know whether that is the actual value of the company.
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The approach to valuation and the amount you set can also have tax consequences. Best to speak to an accountant and/or business valuation specialist who is familiar with this area.