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Archive for March, 2011


Buying a Brother Out - Why 20% of a Company is Worth Less than 20%

Monday, March 21st, 2011

View our new Webinar Pest Control Valuation and M&A 101: The Fundamentals of Valuing a Pest Control Business

After working together for years at Rockford Pest Control, Mark and Tim decided it was time to part ways. Tim asked his brother Mark to buy out his 20% share in the family business, which was left to the brothers when their father died.

After bickering with Mark over valuation for months, Tim decided it was time to get help. Tim’s first stop was the family accountant, who provided the brothers some rules of thumb for valuing the business. The accountant said that he was not qualified to appraise the business for a buy-out and that the brothers should seek the advice of an expert. Without further guidance from the accountant, Tim decided to call one of the business brokers who advertises in the classified section of a pest control industry magazine and commissioned an appraisal. (more…)


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