rule of thumb

RULE OF THUMB VALUATION

METHODThursday, 11 July 13

Rule of Thumb Method

So what is a Rule of Thumb valuation?

Experience

Market Value

Thursday, 11 July 13

Thursday, 11 July 13

Used by small business

Gross Sales

or Net Sales

Based on

or Other Indicator

Thursday, 11 July 13

Thursday, 11 July 13

Advantages of Rule of Thumb

QuickIndustry BasedDefensible

Thursday, 11 July 13

Thursday, 11 July 13

Problems of Rule of Thumb

Not AccurateNot Profit BasedQuick and Nasty

Thursday, 11 July 13

Thursday, 11 July 13

Examples of Rule of Thumb

2.2 x topline income Insurance Brokerage

80c to $1 topline income Accountancy Practice

$3 to $3.50 topline income Real Estate Rent Roll

30 x weekly t/o plus F&F Newsagency

Thursday, 11 July 13

Thursday, 11 July 13

For More Information On Your Business Valuation

BCI Business BrokersTony Arena (Managing Director)

3/1 Alexander Street, Crows Nest, NSW, 2065Phone: +61 2 9439 3399Mobile: +61 411888148

Email: tarena@bc.com.au

Thursday, 11 July 13

Thursday, 11 July 13

To Maximise Your Business Value Visit

www.bc.com.au/maximise.html

Thursday, 11 July 13

Thursday, 11 July 13

To Know More About Valuing A Business

Thursday, 11 July 13