2006-09-27 09:35:26 · 3 answers · asked by rich R 1 in Business & Finance ➔ Small Business
There are a lot of things that go into that equation.
1) What have similar companies sold for in the past
2) How much net profit does the company throw off?
3) Is current management staying or leaving?
4) How is the stock doing?
5) how much market share does it have? Is that market expanding or shrinking?
6) How much inventory and equipment goes with the sale?
7) how long has it been in business?
8) how much brand recognition do you have?
9) How big is the customer base?
With that said, Fair Market Value is what a willing and able buyer is willing and able to pay for it. This means number 1 is where you start.
2006-09-27 09:41:46 · answer #1 · answered by Jim R 5 · 0⤊ 0⤋
A common formula used by business brokers in Canada is to multiply the seller's discretionary earnings by 2 -2.5 in order to arrive at a ballpark value.
2006-09-27 17:03:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
read more tips on real estate to help you on this site
2006-09-27 16:42:33 · answer #3 · answered by elo 2 · 0⤊ 1⤋