Good day fellows.

Please I need advice from those with
experience.

I have a manufacturing business, which I have
so far invested close to N2,000,000. This amount went mainly into machinery and rent
of factory. A little was left for raw materials,
and because of that, we are operating less
than 20% our installed capacity.

The business have great potentials, and the
fact that the product we produce is included
in the list of products the government is
looking into banning its importation
completely (their is currently a partial ban on
it), we foresee greater potentials in the
business.

Operating 80% our installed capacity, we
forecast a realistic annual net profit of
N24,000,000. This figure is expected to
triple as the demand for our products
increase and we expand our operations in
the next 3 years.

Now someone is interested in investing in
our business in exchange for equity.
Considering the bolded above:

1. What do you think the whole business is
worth?

2. If I am to sell 25% of the equity, how
much should it go for.

Thanks in anticipation of your favourable
responses.

OP, just get experts to do a proper valuation of the company and determine it's exact worth as it is now, then you can know the exact value of the percentage you want to sell. That's my opinion.

EmmaFantastic:
OP, just get experts to do a proper valuation of the company and determine it's exact worth as it is now, then you can know the exact value of the percentage you want to sell. That's my opinion.

Thanks boss. someone had done justice to the topic on a similar thread i created in investment section.
Although i am not selling again.

There is a Thin line between equity and Loan repayment. In equity you have to show your investor an exit plan in the event of failure of the venture.

Please First Valuate your company > Negotiate with your potential investor on how much he would pay for 25% based on your current valuation.