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How Do I Sell My Stock in a
Corporation?
Public vs. Private
Options for selling stock in a corporation depend on whether the stock is publicly traded or privately
owned.
Publicly Traded
• Stock issued by public company
• Stock available on open market
• Easy to sell • Brokers can handle
Privately Owned
• Issued by privately co. • No sale on open market • Restrictions on sale:
- SEC restrictions - Shareholder Agreement restrictions
• Restrictions may prevent investors from buying
Private Stock Valuation
• Value usually unknown – no resale market
• Value subjective and hard to determine
• Since no public financial disclosures, hard to value
Valuation Formulas
• Value multiples of similar co.'s • Discounted Cash Flow (DCF) • Examining net tangible assets • Examining internal rate of
return (IRR) • Find method best for you • Price is always negotiable
Finding a Buyer
• Can be difficult - no open market
• Lack of public info may discourage buyers
• Takes time and effort
• Ask what others did to sell • Ask about buyback option to
sell stock back to co. • Co. may have names of
owners/investors interested in buying
Finding a Buyer (cont’d)
Contact us today for immediate help
www.bc-llp.com 888.809.1235
Paula Reno at [email protected] Gina Michel at [email protected]
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