An associate at school has a brother in Switzerland looking to sell a portion of his company, so he came to me looking for help. I got in contact with the brother in Switzerland, and not only is language barrier an issue, but the financial records are all in German, and he doesn't have them in English (minor problem I know).
When I asked him how much he needed to sell off his 20% share in the company he asked for $10MM. The company isn't profitable yet (they have been in business for 2 years), but they have completed R&D and are selling well with patents, and other overhead already expended. I asked how he arrived at the $50MM valuation for his company and he said that the company a BV performed and that was the number they were assessed (he is sending the BV later this week). Finally I asked why he wanted to sell his 30% and he said that the company wanted to get into the US market.
I would like to help the company sell a portion of their stake, but I am not sure I have enough information to do so. Has anyone here had experience with something like this? Is it a project worth pursuing, or should I tell them to go somewhere else? Any advice would be greatly appreciated.
PAX
