Posted on April 3, 2010.
What are the methods used to evaluate a business for sale? More specifically, a health club.? I heard three methods mentioned: 2 to 3 times earnings, 2 times EBITDA, and assets, pay more owners. Are there other comparable methods if the market does not exist? Thank you!
Greetings from the Brain in New York City Yahoo!
I hope you'll watch the broadcast live on responses http://advision.webevents.yahoo.com/askt ... !
There are many different methods that you mentioned, but no guarantee that you'll arrive at a specified price, or pleasing to potential buyers. The reason is all the methods mentioned are just estimates shortcut. If you want a real, accurate analysis of not only what your company is worth, but how can you be able to get more than that, you should contact a broker business confidence, which provides analysis of assessment near you. If you're in the New York / New Jersey tri-state area, for example, you can contact the Empire:
http://empiretristatebrokers.com/index.h ...
Remember, without a third assessment report, a business owner should be prepared for heavy negotiations because it is your opinion of value in relation to a notice of buyers who will not fail to use a model different calculation to reduce their purchase price.
Hope this helps!
- J.
There are many, many of ways.
Fixed assets are a given.
I would say 5 times the profits of the company at 10 times.
All this depends on a number of factors such as the potential profit on the rise.
You must sell your ideas of what society is worth.It is all about profits and gross sales of each model.
