Legal Question in Business Law in Texas

Sale of Business After Husband's Death

My husband and I owned 50% of an oilfield pump repair and supply business prior to his death. (The business is an S corporation). Since I know nothing about the oilfield business and therefore am not a working partner, I have decided to sell my half of the business to the other partner. My husband and the other partner owned the business for 11 years and it is a very profitable business overall.

I feel as though I need expert advise as to the value of the business but don't know whose advice to seek. My accountant tells me he ''thinks'' the business may be worth ''X'' amount but has told me he really doesn't know. He is only basing his opinion strictly on the books and inventory. Others have told me that other factors such as the potential of the business, etc. need to be considered before settling on a final price.

I would very much appreciate any advice you can provide me concerning what professional person I could possibly hire to help me in this matter.

Thank you very much.


Asked on 10/17/01, 9:16 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Sale of Business After Husband's Death

There are numerous accounting and consulting firms whose main area of practice is evaluating businesses. I strongly suggest scouting for them on the internet. When you identify such a firm, ask them whether they have experience with your type of business, or if they'd be competent to evaluate the business.

The value your accountant is giving you is called the book value of the firm. That is the absolute lowest value for a business; assets less liabilities, without regard to earnings.

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Answered on 11/26/01, 11:44 am
Lawrence Maun Lawrence J. Maun, P.C.

Re: Sale of Business After Husband's Death

You probably need more that one person. An attorney who is familiar with the sale of businesses to assure that your interests are protected and also assure that the sale is structured in the most advantagous way tax wise for you, and possbily an business appraiser who may be a CPA. Do not use a business broker. There are certain formulas that may be used to establish value parameters. I do that kind of work if you are in the Houston area. Larry Maun 713-661-7411

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Answered on 11/26/01, 11:46 am


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