pricing a business

[scruffy101]

Does anyone know how to value a business.The business takes £2000pw has 5 year lease and fixtures and fittings approx £10000 to replace,any ideas?

[spikeyhead]

don't value it on turnover but on profit.

Price=Assets (book, not replacement value) + (some random multiplier * future profitability)

[Eric Mc]

srebbe 64 is the man for business valuations - and you might want to post this question on the Business Forum.

As many of us are now realising, nothing has any value whatsoever unless there is someone out there wanting to buy it. And the value will be based on what THEY are prepared to pay for it and what YOU are willing to sell it for.

Trying to set an inital negotiating figure is the difficult part and there are a myriad number of techniques and formulae - very few which have any basis in reality.