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What formula is now being used when considering a asking price ?

I have heard add the past 5 years of income and obtain an average for that total. Or now is it a 3 year total average?

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Answers (4)
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We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539
email: info@interventionmortgagefirm.com
web: http://www.interventionmortgagefirm.com/

Aug 17, 2017
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Homescape LLC
Cook County, IL

Teresa

Some people look at the previous year(s) earning in deciding how much to pay for a business. Other(s) look at what the business could possibly make. The previous responders are correct, there is no one way to evaluate a business, it is really worth what you are willing to pay for it or receive for it. One professional said, "A business is worth what someone is willing to pay for it."

Best

N. Coriano
CEO
www.homescapellc.info

Apr 3, 2011
Marv White
Bizprofitpro
Hartford County, CT
Premium Broker

Hi Teresa, Julie is right, there is no formula. There are industry specific rules of thumb that may be helpful for an order of magnitude approximation. You will need get a professional business valuation done if you really want to know the value of the business.

Apr 3, 2011
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Hello Teresa,

Anyone who tells you that their is a 'formula' for determining an asking price for a business is either a liar or a fool. There are simply too many variables involved. For more detailed advice about how to evaluate a business, please visit my blog: http://www.AustinBusinessesForSaleBlog.com - feel free to post any questions you might have - I promise to answer them ASAP.

Good Luck
Thanks
Julie A. Barnes, CPA

Apr 1, 2011

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