Value can be determined by forecasting cashlows and the growth rate, as well as comparing similar businesses to triangulate the value.
Value more specifically can be identified by: - contracts that can be transfered - relationships that can be leveraged - brand - tangiable assets It's hard to value intangiable assets and goodwill objectively (hence why the accounting standards don't recognise them unless you actually paid cash to acquire a business). But like any other business, it's fundamental valuation comes from the cashlows. So the question is: how much money can this business generate? And how much of it can be done (or only done) with the current staff of the business. If you can work that out, you've got half a Discounted Cashflow Model (a tool used to value companies). Sent from my iPhone On 08/06/2009, at 2:01 PM, Mick Liubinskas <[email protected]> wrote: > > Any thoughts on valuation ranges for services based businesses? > > x-y times revenue? > > w-v times ebit? > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Silicon Beach Australia mailing list. No lurkers! It is expected that you introduce yourself: http://groups.google.com/group/silicon-beach-australia/browse_thread/thread/99938a0fbc691eeb To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en -~----------~----~----~----~------~----~------~--~---
