Selling Private Company Shares

Discussion in 'Business Accounting, Tax & Legal' started by Grain2glass, 5th Sep, 2018.

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  1. Grain2glass

    Grain2glass New Member

    Joined:
    5th Sep, 2018
    Posts:
    2
    Location:
    Geelong
    Hi everyone,

    I have some questions about private company shares. I own the second largest holding in a successful brewery that has been operating for 14 years and is the leader in its market niche (gluten free). It has national distribution, into a mature growth phase, is profitable and pays fully franked dividends annually. I moved on from an active role in the company 18 months ago and no longer have that emotional attachment to business and would much rather sell up now and get back into home ownership!

    So my questions are; Where do you find investors looking for solid private company shares? And secondly, what is the best way to put a value on the shares? I have full financial information to determine turnover per share, earnings per share, dividend payout etc. Is there a risk factor applied to private shares?

    Any help would be appreciated. We have a larger brewery circling interested in buying the company as a whole but that may be a year or two away from happening.

    Cheers, Andrew.
     
    2 people like this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    1,461
    Location:
    QLD
    welcome to InvestChat,

    you probably need a ( full service ) broker to handle the sale , i assume your holding is a fair $$value . ( he/she will phone around and see who is interested )

    but also waiting for a take-over offer or even approaching the suspected buyer ( yourself ) might work , if time is important

    value on shares ???

    normally that is straight performance metrics that is earnings , forecast earnings , outstanding debt obligations etc.

    good luck
     
  3. Grain2glass

    Grain2glass New Member

    Joined:
    5th Sep, 2018
    Posts:
    2
    Location:
    Geelong
    Thank you for the comment, yes the holding is around the $300k mark plus/minus $100k depending on how you value it so getting that part right is important. I'll get in touch with a broker and see how I go.

    Cheers, Andrew.
     
    2 people like this.