valuing a company

[taffyracer]

I know this is a sort of how long is a piece of string and every business is different, but is there a general rule of thunm of how to value a business based on NP, GP and assets?

[fergywales]

A combination of what you have stated, plus solid accounting history should you be looking to sell the business concerned.

If you are after a great accountant from the South Wales area, I can highly recommend any of the partners within Roblins.

[taffyracer]

Is there not a basic formula? I always thought it was a multiple of NP with some goodwill chucked in, more if the business has potential etc

Cheers for the recommnendation

Edited by taffyracer on Sunday 13th April 14:51

[Mr Beaumont]

My dad told me the company he works for is valued at 10 time the Net Profit. Then again he does lie quite often.

[Ade355]

taffyracer said:

Is there not a basic formula? I always thought it was a multiple of NP with some goodwill chucked in, more if the business has potential etc
Cheers for the recommnendation

Edited by taffyracer on Sunday 13th April 14:51

IMO Most common formula/methods have so many variables in reality (forget the theory) that it is tricky and actually quite misleading to sum-up in a snappy sentence. But then again I am involved with relatively small businesses in relatively risky industries which makes valuations more about your own personal circumstances, strategy and overlap with your other businesses.