Rule of Thumb

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RULE OF THUMB VALUATION METHOD Thursday, 11 July 13

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What is Rule of Thumb Method?

Transcript of Rule of Thumb

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RULE OF THUMB VALUATION

METHODThursday, 11 July 13

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Rule of Thumb Method

So what is a Rule of Thumb valuation?

Experience

Market Value

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Used by small business

Gross Sales

or Net Sales

Based on

or Other Indicator

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Advantages of Rule of Thumb

QuickIndustry BasedDefensible

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Problems of Rule of Thumb

Not AccurateNot Profit BasedQuick and Nasty

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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

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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]

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To Maximise Your Business Value Visit

www.bc.com.au/maximise.html

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To Know More About Valuing A Business

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