How would you valuate this wholesale distribution business? - wholesale four wheelers
We sell health and beauty. In business for about 3 years. The annual turnover was $ 200k, 500k and 700k. Online sales through four completely different distribution channels. We sell to individuals 80% Wholesale 20%. We have our own store of 2500 square meters, 2 months ago. What is the best way to determine the value of that transaction?
Saturday, January 16, 2010
Wholesale Four Wheelers How Would You Valuate This Wholesale Distribution Business?
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2 comments:
With a multiplier of NET is the starting point. This is your base. So those who buy your company, you are looking for stability. Three years is not bad, but five is better. He will try to see if the growth is sustainable. Your building is included in the price? What are the costs for the value.
They have obviously done a good job to get this business. You can find the greatest asset of the company. So if you want money, the company would produce much less valuable.
Again, as one of my previous speakers said, there are many variables. There is no simple relationship between the value of each company.
Good luck and congratulations on creating a successful business. It is not easy.
Forget all the theory. The assessment is not a science but an art. 2 ways to proceed:
1. Multiples of annual earnings (2x, 3x)
2. Comparable ( "compositions")
Your best is best, what ...
a. Open an Excel file
b. A list of comparative data (which was sold)
c. Try to get the slope of this line (see = mx) + b, where Y and X is the evaluation of the annual turnover
d. Find out where you stand in this line
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