SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (273379)2/11/2006 12:02:52 PM
From: d[-_-]b  Respond to of 1575466
 
Elroy,

re:Small Business valuation question. I have an opportunity to buy a successful beauty salon out here. Does anyone know what a fair price is for a small business like that, as either a multiple of annual revenues or multiple of annual profits?


3-5x net profits + inventory (at cost) + property.



To: Elroy who wrote (273379)2/11/2006 12:47:25 PM
From: Taro  Respond to of 1575466
 
For small shops you should rather look at 4x annual profits - and at the customers list. You know anything about beauty salons?
Assuming they cater to female clients, then some fringe benefits may come with it as well ;)

Taro