Situation
A family-owned New England specialty food service company had hired a non-family member to be a partner in the business. Issues arose among leadership and the family chose to buy him out and part ways. The family contacted Lou Pereira of Merrimack Business Appraisers for a business valuation in order to value his shares of the privately held business and buy him out.
Merrimack Business Appraisers’ Approach
- Based on the business structure, Lou Pereira developed multiple business valuations as the company was organized into multiple entities.
- The removal of the partner from the business was being settled through arbitration. Opposing counsel (representing the outside partner) deposed Lou Pereira, President of Merrimack Business Appraisers. In the deposition, Pereira explained how the valuations were determined for four related entity business valuations, explaining the process and how and why the valuations were calculated.
Valuation Outcome
After Pereira’s deposition, the opposing counsel agreed to the business valuations presented by Merrimack Business Appraisers. The value of the associated shares owned by the party were confirmed and the family was able to proceed with the buyout.
