Business Valuation. How ?

[Hobo]

Based on following what do you reckon

Year 1 - £160k turnover, £30k profit
Year 2 - £300k turnover, £60k profit
Year 3 - £550k turnover, £110k profit
Year 4 - £750k turnover, £150k profit (forecast based on first 4 trading months)

Assetts of circa 25k

Monies in bank circa 25k, owed at present £150k, owe at present £75k

[griffgrog]

Can you tell us, what your business does, how many people it employes, the number of customers and if any one customer represents more than 10% of your sales revenue?

[StevieBee]

Far too many variables to give an accurate estimation but ignoring bank, owing, etc, assuming profit is EBIT, then based upon average EBIT x 6, then you’d be looking at £525,000 as a VERY rough starting point.

However, the exact valuation is exactly what someone is prepared to pay for it and that depends on far more than you would be able to summarise here.

Hope that helps.

[Cue]

as has already been stated it's impossible to value a business on just the numbers you've mentioned. You need to take into account staff, reputation, customer base, contract lengths etc etc.... if you bought the company for X and all the staff walked out and customers left to go with the staff you'd have no business.

[BJG1]

It also depends on the market in which the business operates, is it extremely volatile? Do you sell a product to different customers each time or do you rely mostly on repeat customers? Is the product being sold unique to the company? If so does it hold a good patent for the product?