joshuabcrutcher
Member
Suppose the following criteria:
A company has been in business for 5 years. They have a good reputation and shown steady growth at about 20% per year. Of their $100,000 of NET income, they receive 50% from residential and 50% from commercial contracts. Assuming no liabilities upon purchase and you had the cash available, how much would you pay for the business?
Net Income - $100,000
Assets (Rig and truck) - $15,000
No liabilities
Client list + equipment + introductions
Feel free to chime in on additional thoughts and experiences...
A company has been in business for 5 years. They have a good reputation and shown steady growth at about 20% per year. Of their $100,000 of NET income, they receive 50% from residential and 50% from commercial contracts. Assuming no liabilities upon purchase and you had the cash available, how much would you pay for the business?
Net Income - $100,000
Assets (Rig and truck) - $15,000
No liabilities
Client list + equipment + introductions
Feel free to chime in on additional thoughts and experiences...