Last update:
February 05. 2010 04:49:04

Business and taxes > Valuation

Valuation

Good Business Brokers have been trained, educated and have expertise to help them valuate business. A common mistake is to look at Net Profits. Profit does not equal value.

Now another way to valuate a business is to take OCF + FFE + Inventory + Lease Hold improvements or real estate if the real estate is apart of the deal = value.

Of course you need to look at ROI Retrun on investment. How much money can you make on investing your money in this business vs placing it into another vehicle. ROI should be about 3 to 1 in general terms.