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We have a partnership. One of the partners made a withdrawal and want to withdraw from the company on 31.12.2004. Because the partners probably will decide to continue the business so there is a need (to different assessments of goodwill by the parties) the valuation of the company by an expert. Please let us know which method of valuation must be used to determine the value of the company? Is the outgoing partner has an effective right to demand that there be a cost method of valuation?

 

I think you have to make at least two valuation methods and negotiate, rejecting any emotions that are later cause serious charges. It is important that both parties have agreed to jointly selected expert or consultant (in the case of a court case about it will look more or less like it so much more expensive costs).

Valuation and so must be truthful, not least because of the role of the IRS in this whole matter, which in the case of serious doubt can cause its own valuation.

In such a situation generally presented, I can not write anything more concrete.