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.
Opinions expressed by Entrepreneur contributors are their own.
Numerous valuation methodologies can be used to determine the value of a business. The problem is that no one methodology is appropriate in all circumstances.
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.
Save to your Queue
Add your favorite articles, videos, podcasts, and more to your Queue so you can enjoy them anytime on any device.
Stay Inspired
Be the first to get inspirational content - handpicked and delivered to your inbox.
Customize Your Content
Take control of what content you see. From inspiration on starting a business to learning more about how to find solutions - make our site yours and never miss a beat.