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What is Rule of Thumb Method?
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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: [email protected]
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