AboutRobert Doblmeier, M.Sc. Expertise I am happy to answer questions about Small Business Sales i.e. Small businesses with Gross Sales in the 250K to 50 million dollar range. The business must be privately or closely held(no publicly traded companies).
Experience Why me? I am a full time business broker with a 14-year history in real estate in New York and Florida. I taught the New York State Licensing course for 2 1/2 years. I am the winner of VRs’ Prestigious Bronze Award for 2006, and a major reason my office won the Centurian Award in 2006. After just seven months in this office, I closed the deal that resulted in the largest single commission in our offices’ history, a record that stood for over 1 full year. I am an instructor for the Small Business Development Administration, teaching a course I designed and created called "How to Buy a Business". I am a Certified Networker and have won the Notable Networker Award three times in one year. I am also an instructor for the Referral Institute, teaching the Referral Pipeline course. In 2006, I was nominated to the Presidents' Business Advisory Council on Small Business. Most importantly, I have amassed a large database of recognized professionals that can facilitate your transaction.
Organizations The Referral Institute, Business Networking International, International Business Brokers Assoc., German American Business Council,
Publications Small Business Development Corp. and various private newsletters.
Education/Credentials B.Sc. Stockton College, M.Sc. Long Island University,
Awards and Honors Centurion Award for 2006, Bronze Award for 3Q 2006, Recognition for the First SBA loan done in the Office.
Past/Present Clients I can not , for reasons of confidentiality name past or current clients. I can name industries where I have facilatated a transaction: marine, furniture, beauty industry, education, food service, automotive, home improvement, construction, and tax industry.
Question I work for a company that has two shareholders. The company is an S corp. One partner owns 51%, the other 49%. The corp. was formed 1/1/08. Partner #1 (51%) holder got advice from his laywer that the corp. was worth nothing, even though the retained earnings for the year ending 12-31-08 was almost 1 million. The corp. had assets with an estimated value of 2 million. I believe that the lawyer is not knowledgeable in the valuation of a company.
How can a company be worth nothing when it has assets and retained earnings and no debt? Partner #1 has told Partner #2 that his 49% has no value since it was worth nothing when the company became a S corp. Each partner paid taxes on the retained earnings and both received a K-1.
The above website MIGHT explain some of the situation. I can only assume from the question that this is a domestic dispute between partners of some sort where one partner (by choice or by force) has not had access to all the daily operations of the business in a regular basis. Business Valuations change quickly depending on many factors, most out of the business owners hand or ability to control. I do agree with you that on face value (excuse the Pun) something sounds OFF here. In this case you need to see a Certified Value Analyst (CVA), look for a CPA with experience and this particular designation. Without knowing significantly more and seeing a tax return, it would be unwise to comment. If this is a dispute over the business, you might get a judge to require a third party valuation or you might sue for one.
Please keep me posted I would certainly like to know more. What type of business is it?
