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How do you value sweat equity? Buyer wants to pay low down payment and earn ownership.

Company selling for $500,000. Buyer wants to invest $50,000 and work with current owner until the earnings can purchase the remainder of the stock. Expecting the company to double sales in 5 years with Buyer's skills. "S" corp. How do you value the sweat equity?

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The BAF Group LLC
MD

As a direct relationship with the profits from the new business he brings in, is the most obvious answer.

May 11, 2012

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