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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 preno@bc-llp.com Gina Michel at gmichel@bc-llp.com

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