KWERY:I own 25% of a business, and my partners are pushing me out. We need to get the business valued, but I’m concerned that they’re going to use all kinds of discounts to reduce what I should be entitled to. How do I handle that problem?
RESPONSE:Generally speaking, and by all means you need to check with legal counsel (it can depend on what state you are in), if you are being pushed out of a business, you might have a claim based on shareholder/partner oppression. If that’s the case, again generally speaking, discounts against the otherwise determined value would not be allowed. That is, in those situations typically fair value is considered the appropriate standard of value – not fair market value (which often includes discounts).
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