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How to determine fair price for share in a business?

Discussion in 'BlackHat Lounge' started by Viltedali, Jul 25, 2010.

  1. Viltedali

    Viltedali Regular Member

    Feb 10, 2008
    Likes Received:
    Basically I have a partner, we maintain a website for someone.

    I really don't do much, maybe devoting 5 hours a month to it.

    My share depends on how much my partner works, the actual hours worked by each of us are deducted from our $, before we split it.

    Let's say I make $500/month on average after each of our hours are factored in, what would a fair price to sell my share to him?

    Would something like a monthly earnings multiple (or whatever) (maybe 6x?) be used for figuring the value?
    Last edited: Jul 25, 2010