If they can't agree on one, they could hire separate valuators and submit the differing evaluations to binding arbitration. An important aspect to consider is the payment plan. The remaining partner should be given a timetable for buying out the departing partner. Often, ready, immediate cash is not available, but could be paid out over 5 to 10 years, per the parties' agreement. Consider their years of experience, and whether they are familiar with the industry you operate in.
People buy a business based on future cash flow.
They want to know how it might change under new management. This seems like sensible advice. And nobody wants to think about that, especially when they're starting something new. Business Week Online may receive a share of any fees you pay for services. The McGraw-Hill Companies Inc. All rights reserved.