Buying out a partner? Work out the price of their share.
Business value, less debt, plus spare cash, times the share being bought, with or without a discount.
Before debt. No figure yet? The quick valuation calculator gives a rough range to start from.
Bank loans, equipment finance, overdrafts, and loans from owners the business will repay.
Cash above what the business needs to keep trading.
Nothing you type leaves this page.
- Value of the whole business
- $1,200,000
- Less debt
- −$200,000
- Plus surplus cash
- +$50,000
- Value of the equity
- $1,050,000
- 40% share, pro rata
- $420,000
This is arithmetic on the figures entered, not a valuation. The value of the business, and whether a discount applies, are what a signed valuation report settles. Tax on the sale is a question for your accountant.
Need the signed number? Buyout valuations from $1,495 + GST.
Important: This calculator does arithmetic on the figures you enter. It is not a valuation, and it is not tax, legal or finance advice. Oliver Group prepares valuations only and is not a registered tax agent.
Four steps from business value to buyout price.
The full guide covers the agreement, the steps of a buyout, paying for it and the tax questions to take to your accountant. How to buy out a business partner.
- 1
Value the whole business
What the business would sell for as a going concern, before taking its debts into account.
- 2
Take off debt, add surplus cash
Bank and equipment loans, and loans from owners the business will repay, come off. Cash the business doesn't need to trade is added. The result is the value of the owners' equity.
- 3
Take the share being bought
A 40% share is 40% of the equity value: the pro rata price.
- 4
Apply a discount only if it is allowed
Some agreements and situations support a discount for a minority share. Others rule one out. Your agreement decides first.
One signed value to negotiate from.
Buyout valuations from $1,495 + GST for a business with annual turnover under $2 million, as a signed report in 2 business days. Delivery time starts once payment and all required information have been received. Every report is reviewed by a second valuer before it is signed.
Common questions.
How do you work out the price to buy out a business partner?+
Start with the value of the whole business. Take off what the business owes and add any surplus cash: that gives the value of the owners' equity. The departing owner's price is their share of that equity, less any discount your agreement allows for a minority share. The value of the business itself is what a valuation report settles.
Does a minority discount apply when you buy out a partner?+
Only if your agreement or the facts support one. Some shareholders’ agreements and partnership agreements set the price as a pro rata share of the whole, which means no discount. Where the agreement is silent, the valuer works out whether a discount applies, and how large, from the facts. There is no standard percentage.
Is this calculator a valuation?+
No. It does the arithmetic on the figures you enter. A valuation decides what the business is worth, with the method and the evidence written down and signed. An Oliver Group buyout valuation is a fixed $1,495 + GST for a business with annual turnover under $2 million, delivered as a signed report in 2 business days. Delivery time starts once payment and all required information have been received.
Can the buyout price be paid over time?+
Yes, if the owners agree. The buyer can pay in instalments, usually with interest and some form of security, on terms set out in the buyout agreement your lawyer prepares. The calculator shows equal monthly repayments at the interest rate you enter. That is arithmetic, not finance or tax advice.
Talk to a valuer
Tell us about the buyout.
A fifteen-minute call confirms the package, the fixed fee and the delivery date, before you commit to anything.
03 8375 4177Mon to Fri, 9am to 5:30pm Melbourne time
Send the form and we reply within one business day. No documents needed to start.
Small Business Valuation
$1,495 + GST
For a business with annual turnover under $2 million. Signed report in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the outcome.
Larger business? Tell us in the form and we recommend the right package. All fees