A quick and dirty valuation = Sales in three years = Future Value Present Value = FV less discount
A reasonable rate should be between Year 3 Sales x .125 up to Year 3 Sales x .343 Based upon 35% to 50% discount rate. On Jun 8, 2:24 pm, Elias Bizannes <[email protected]> wrote: > 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? Richard Hayes Carbon Free Solutions 0414 618 425 --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
