Small company with owner owning all the authorized shares. Wanting to sell 25% of the company to another person. Sell 25% of his existing shares, enter into a stock purchase agr & SH agr., or authorize more shares, execute a subscription agr? How to determine the company valuation and price per share in either scenario?

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Get a 409a valuation to determine share price or otherwise have the owner negotiate the buy-in

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I assume there'd be tax implications to the owner from a sale of the shares, no?

How much does he want for 25%? Multiply by 4 and that’s the company’s valuation

The value is whatever a third party will pay in an arms length transaction. Not a tax guy, but assume if you purchase shares from the owner, he’ll be taxed, whereas a purchase from the company (with cash staying in the company) is a contribution

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