Selling my small retail business, need to figure out an offer

[chuyyale]

Good day everybody. I am a 1/3rd owner of a small but profitable retail store. The other two owners are brothers and are interested in owning it for themselves and I am interested in moving. I believe Mexican business law requires me to make them a fair offer, although I dont know if we have to arbitrate if they reject the offer. I think I can get a good price for the business since they want to be sole owners and they know it is successful and they want to own it as brothers. The negative part is they know I am moving and will need to sell it within a half year. What is the best way to figure out a good offer?

The business is a franchise, my share brings in $6000 usd profit per year. The amount of work required by my share is 5 hours a week. Inventory value at any given time isnt high, $1000 usd for my share. Future earning dont seem clearly up or down. The city is safe and economically stable. We have been open since April.

Thank you very much for your time and have a great day.

[jamesray50]

What type of entity is it? A partnership? A corporation? What do the papers say about what would happen in the event that there would be a separation in one of the partners, or owners? You need the advise of an attorney or tax accountant, which I am not either. Maybe one of them will tie in and answer this for you.

[vangogh]

One of the ways people value a business when it's for sale is to use some multiple of the revenue it brings it. I see all sorts of different numbers in terms of time, but somewhere between 1 and 2 years seems common. So if your share brings in $6,000 a year maybe somewhere between $6,000 and $12,000 would be a fair price.

If you're going to have to sell in a few months then you may want to accept a little less than what you could get in order to get things done sooner rather than later.

[chuyyale]

Hello again, and thank you for your answers!
It's a partnership, under my name, no contract between the three of us, just with me and the franchise (the franchise knows they're my partners, though). I'm planning on moving in about six months, but one of my partners seems to be pushing me to sell sooner.
Thank you for your advice, I'll try to find a business accountant or someone like that :)
Have a great weekend.
Ale

[vangogh]

A business accountant is probably a good idea. We can offer ideas, but most of us probably aren't experts on valuing a business or part of a business. I would suggest doing your research sooner rather than later. You'll have more leverage now than you will in 6 months when you're feeling forced to sell. I'm not sure if you expect negotiations with your current partners to be an issue, but later they'll have most of the leverage and you may have to settle for less than you would by negotiating earlier.