- Original Poster
- #1
Dear all.
Due to circumstances my business partner and I are in a position that will very likely result in the buying out or selling of our company.
Could anyone estimate our companies value? I'm aware any rough valuation would be subject to many Ifs and limited information, but the facts are:
1. the business is 2 1/4 years old
2. year 1 loss of 20k
3. year 2 break even
4. current monthly breakeven, though we now have 2 employees taking a 1.5k wage monthly (so the business would making 1.5k per month if just my biz partner and I worked there- so we do not take a wage as yet.
Relevant facts going forward
1. Our business is client driven and we retain 90% of clients from year to year.
2. Total clients 65, ave client spend 1k per year.
3. Year 2 we took on 50 clients a year, 3 times more than year 1
4. We can value the company on the same 50 new clients a year for each successive year, though this could realistically be 75-100 if reasonable growth continues.
4. Again we dont lose many clients, but we can work on the basis that we retain 90% year on year.
5. So end of year 3 we should have 115 clients with an ave spend of 1k at worse.
4. Presently we take about 5.5k per month and we lay out 5.5k.
5. Our operational costs will not be affected much be the future growth until year 4 or 5 realistically.
6. Given that op costs will not change much in the next 3 years (that is 65-75k) I expect the business to make 145k profit before tax for the 5th biz year end. (215k - 70k = 145k).
Any rough valuations would be gratefully recieved as we are entering buy-out / possible co. sales talks.
Thanks
Due to circumstances my business partner and I are in a position that will very likely result in the buying out or selling of our company.
Could anyone estimate our companies value? I'm aware any rough valuation would be subject to many Ifs and limited information, but the facts are:
1. the business is 2 1/4 years old
2. year 1 loss of 20k
3. year 2 break even
4. current monthly breakeven, though we now have 2 employees taking a 1.5k wage monthly (so the business would making 1.5k per month if just my biz partner and I worked there- so we do not take a wage as yet.
Relevant facts going forward
1. Our business is client driven and we retain 90% of clients from year to year.
2. Total clients 65, ave client spend 1k per year.
3. Year 2 we took on 50 clients a year, 3 times more than year 1
4. We can value the company on the same 50 new clients a year for each successive year, though this could realistically be 75-100 if reasonable growth continues.
4. Again we dont lose many clients, but we can work on the basis that we retain 90% year on year.
5. So end of year 3 we should have 115 clients with an ave spend of 1k at worse.
4. Presently we take about 5.5k per month and we lay out 5.5k.
5. Our operational costs will not be affected much be the future growth until year 4 or 5 realistically.
6. Given that op costs will not change much in the next 3 years (that is 65-75k) I expect the business to make 145k profit before tax for the 5th biz year end. (215k - 70k = 145k).
Any rough valuations would be gratefully recieved as we are entering buy-out / possible co. sales talks.
Thanks
