UnThreaded | Threaded | Whole Thread (43) | Ignore Thread Prev | Next
Author: IsleofWightPete Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 95965  
Subject: Re: Company directors' dispute: more advice, ple Date: 09/04/2012 10:20
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Two directors taking salaries of £30k each. £60k annual profits must mean the company is worth somewhere around £500k.

I would be genuinely interested to know what maths you used to calculate that.

In my experience, Directors salaries, where they are working in the business, are not generally considered as profits for calculation of the value of an enterprise.
And I am not aware of many (in fact ANY) business buyers who would be using multiples of 8 times profits. More like 2 - 3 times in my experience.

Unless I missed something in one of the many replies from n1n, I do not think we know enough to say the business is even producing a genuine profit (rather than just being a way for directors to take a salary) and therefore we don't know that the enterprise has any positive commercial value at all, much less anything to produce a value of £500k.

At least get a professional valuation.

I would agree with that.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (43) | Ignore Thread Prev | Next

Announcements