I am negotiating to take a third share in an IT company. The company in question has been trading for just over a year and provides mainly consultancy services but also retails hardware
Does anyone have any suggestions as to how I should value the company? T/O was £100k in the first year, with retained profits of £5k after dividends (other 2 shareholders are main employees and take most of their income through dividends)
Being mainly consultancy driven, tangible assets are fairly insignificant, the value being derived from goodwill
Also, are there any tax implications I should consider?
Thanks in advance