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03 - Buying a Business Making a Business Investment or Acquisition
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Old 09-26-2008, 07:49 AM
mark_sunbelt mark_sunbelt is offline
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Join Date: Sep 2008
Posts: 16

Originally Posted by blackice View Post
What are some of the multiples or formulas one uses in valuing an online business? What are the factors one looks at? Has anyone here ever have any experience on either side of such a transaction? Do you know of any means of reference to which you can point to help find such answers? Thanks.
there are various types of valuations available provided by business brokerage firm called sunbelt business sales & acquistion (google it, if you have some time) or just click on my signature below:
Letter of Opinion :

The Letter of Opinion is a restricted use valuation intended for small companies with sales less than $250,000. The report is approximately 11 pages and provides only a brief synopsis of how the valuation conclusion was determined. The basis of this valuation is a market comparison with like companies within an industry.

Value Analysis :

The Value Analysis is a restricted use business valuation designed specifically for the “main street” business with sales of $1,000,000 or less. The report is intended for “asset sale, financial buyers” and is approximately 40 pages providing only a summary of how the valuation conclusion was determined. The basis of this valuation is discretionary cash flow, since most main street businesses are bought and sold on a multiple of cash flow. The value considers primarily historical and current financial performance and very little time is spent with the Balance Sheet.

Formal Business Valuation :

The Limited Formal Valuation is a restricted use business valuation intended for the standard small business with sales between $1,000,000 and $5,000,000. The report is intended for “asset sale, financial buyers” and is approximately 70 pages providing a detailed review of all aspects that were considered in determining the final valuation conclusion. The bulk of the report is financial analysis and the valuation conclusion is supported on much more detail. In addition to reviewing the company’s historical and projected earnings, the report also contains a detailed review of the Balance Sheet.

M&A Valuation :

The Merger & Acquisition Valuation is a comprehensive business valuation for transactional purposes and is developed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). This is a stock valuation and is intended for the middle market business with annual revenues in excess of $5,000,000, businesses that are expected to sell for more than $1,000,000, strategic acquisitions of niche businesses, and generally any business with significant growth expected in the future. The basis of the valuation is focused on future earnings and the selection of guideline companies comes from both the private and public markets. This report is a completely customized report and the number of pages can range from 30 to 200 depending on the information that is used to support the conclusion.

IRS Revenue Ruling 59-60 :

A USPAP governed valuation developed for litigation focusing on US Court Reviews, Cited Court Precedents, and in-depth analysis and research of minority and marketability discounts. Intended for Estate Tax, Gift Tax, ESOP’s, Divorce, and any situation requiring litigation. This valuation is normally used when the value of the stock is in question (minority or majority interest).

you gotta check out which one applies for you and talk to one of the qualified brokers about how to proceed..hope this has helped..
Planning to buy or sell your business?
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Old 02-18-2009, 09:40 AM
Joetrevison Joetrevison is offline
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Join Date: Aug 2008
Location: Erie, PA
Posts: 12
Default I have software that can do the job

You need three 3 years of tax returns. My software consulting costs $300 per business.

Every business should
Pay a profit
Pay for the Business
And give you investement figure too.
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Old 03-06-2009, 01:51 AM
AllAboutBusiness AllAboutBusiness is offline
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I agree Joe. For every business, it should generate you good revenue.
A good marketing plan ...
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Old 05-14-2012, 05:57 AM
adrian_in9@yaho adrian_in9@yaho is offline
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Join Date: Oct 2007
Posts: 316
Default Re:

When choosing your web hosting company, Amount of Storage is the primary requirement. Some companies offer “unlimited storage” but you should read their term and condition carefully. Cloud Hosting Providers
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