business valuation

[ant996]

I have a recruitment business, can anyone give me an idea on how to value it? we do a mix of temporary and permenant staff have more than 10 blue chip companies we deal with, and are turning over about 2.5million a year.

Also, how do I go about selling it???

I realize this is very brief but I'm really just trying to get an idea.

thanks in advance

Anthony.

[Obiwonkeyblokey]

this is a piece of string question and one I have asked on a few occasions as well.

rule of thumb, take your profit. times it by 6 ( as a guess) then find someone who will give you that for it.........

to be honest theres a lot more to it than that, ata the end of the day its what someone is prepared to pay...

O

[thewave]

ant996 said:

I have a recruitment business, can anyone give me an idea on how to value it? we do a mix of temporary and permenant staff have more than 10 blue chip companies we deal with, and are turning over about 2.5million a year.

Also, how do I go about selling it???

I realize this is very brief but I'm really just trying to get an idea.

thanks in advance

Anthony.

I think placing a value on a business from turnover and sector alone would be pure guesswork.

Can't help on who you'd approach to sell. What about your management buying you out? It's what's happening at my place.

[ant996]

Hi I'm assuming thats net profit times 6?

[spikeyhead]

ant996 said:

Hi I'm assuming thats net profit times 6?

Its the net profit that's going to be made on average in the future.

[Horse_Apple]

ant996 said:

I have a recruitment business, can anyone give me an idea on how to value it? we do a mix of temporary and permenant staff have more than 10 blue chip companies we deal with, and are turning over about 2.5million a year.

Also, how do I go about selling it???

I realize this is very brief but I'm really just trying to get an idea.

thanks in advance

Anthony.

All the big accountacy firms have teams to value and sell your business.

[wattsm666]

You need maintainable profit, which is after exceptional expenses such as lifestyle are taken out, market rate rent if you own the property you operate from, director's remuneration if it isn't at a commercial level (what would it cost to replace you!), either too high or too low. Then use your multiple - what ever that maybe.