Business valuation : Rule of Thumb

Often this question crops up in business discussion about how to value a business.

Every industry has its own way of valuing. Actual valuation is ultimately a matter of negotiation but some bench mark is needed as a guide post for both parties to start negotiations.

Like in our own accounting business : value is usually 110% of the annual revenues.

I came across a gem during my recent studies, have a look via link below:
http://www.bizstats.com/reports/valuation-rule-thumb.php

This gives a basic rule of thumb used in valuing different businesses.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s