Owned a Model and talent business for 22 yrs, company gross between 450,00.00 to 1,100,000. low end to high end, decided to close the company due to financial hardship, A very good friend currently has a small casting agency, decided to open a new division. with all my Resource ...
1. Me acting as a consultant, About the Industry,
-meeting : 1.Over View about Industry.
-Meeting 2. What is required.
- Meeting 3. Discuss in detail about , How an Agents would negotiate - Fee , Rates, release, when a client would hire talent.
-Meeting 4. Discuss Industry Social marketing and Talent, Usage structure , recommend Photographer
• Personally introduce 40% of my talent via email, 70 emails.
• Client List, of 22yrs, These are Client who would hire the models & talent.
• Marketing resource.
• Industry resource : Photographers, Model Card producer,
• Refer for her to hire a Agent.
• Refer for her to hire a Book keeper.
There is no "legal" solution to your question, only an accounting/valuation question. An appraiser or CPA (but not all CPAs) would be the proper object of your questions. In the end, free market forces define your answer - whatever a willing buyer agrees to pay a willing seller without constraints of time or finance availability.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
You definately want a written agreement.
How much you would be paid on an ongoing basis,
As for the value of the business how much, and how long, would it take for him to set up a similar business from scratch?
This is NOT legal advice, just a general discussion of the law, as we are not familiar with the specific documents and facts of your case, etc. Please consult with a competent attorney in this area of the law for specific legal advice regarding your particular case, as the advice may vary depending on the facts.
I can't tell if you are asking for a value of your company, or for how to value what you are offering as a service. It sounds like the latter,and that's up to the 2 of you. A percentage of deals made seems worth considering, after you come up with a base number. But, as Mr. Doland correctly points out, this is not a legal question.
All of Ms. Straus’ responses posted on Avvo are intended as helpful information, based solely upon the facts stated in the question, and are not to be relied upon as a full or complete legal opinion. It may not be what you wished to hear, and it does not create an attorney-client relationship. Ms. Straus has been licensed to practice law in California for 33 years. Ms. Straus regrets that she does not provide follow up free advice via email. Good luck.
Sales of business need to be professionally valued. An appraiser needs to know the income of the business, as well as its assets, which in this case includes this client base and of course the name (its service mark)of your and reputation/good will of the company. That's one person or company you need to hire.
You also need a hire a business lawyer to prepare and negotiate this sale agreement, whether your business is a sole propietorship or corporation or LLC involving sale of stock/membership shares. CA law will prevent you from competing with a business your'e selling, and as Attorney Doland suggests, it might be in the interests of both you and them to hire you as a consultant to the company for the transition period.
Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.
Ultimately, your company and its assets are worth what someone is willing to pay for them. There are companies that will do an asset valuation on your behalf, and that number could be a good starting point for your negotiations. In situations like this, I have seen businesses sold for a gradually-decreasing percentage of revenues for a set number of years (e.g., 25%, 20%, 15%, 10% and a 5% tail in perpetuity). However, it is important to set a "floor" (and a "ceiling" if the buyer requests) as to the total amount that should be paid in any given year. This gives you some certainty, while also protecting you against a buyer to takes control of your assets and then does little or nothing with them. In any event, you should secure legal counsel to draft an asset purchase and sale agreement on your behalf that lays out the assets to be conveyed, and the payments to be made. Good luck!
Not a legal question. You need to speak with an accountant who has experience in your industry to place a value on your business and goodwill. Are you transferring any IP, trademarks, copyrights etc...? Often they are very valuable. Do you have an existing book of business that you will be bringing along, models and actors under contract with you?
For more detailed advice, I recommend that you contact an experienced Entertainment /IP attorney to advise you in confidence about your options and potential costs. Many IP specialty firms, like ours, offer an initial free conference by telephone, video conference or in person if you are available locally and would be happy to speak with you. Call and speak with an experienced Entertainment /IP attorney who can assist you.
Mr. Sack's postings on Avvo are of a general nature, based on the facts provided and are not intended to be taken as legal advice or to establish an attorney-client relationship.
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