Rule of Thumb

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What is Rule of Thumb Method?

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Rule of Thumb

  1. 1. RULE OF THUMB VALUATION METHOD Thursday, 11 July 13
  2. 2. Rule of Thumb Method So what is a Rule of Thumb valuation? Experience Market Value Thursday, 11 July 13
  3. 3. Thursday, 11 July 13
  4. 4. Used by small business Gross Sales or Net Sales Based on or Other Indicator Thursday, 11 July 13
  5. 5. Thursday, 11 July 13
  6. 6. Advantages of Rule of Thumb Quick Industry Based Defensible Thursday, 11 July 13
  7. 7. Thursday, 11 July 13
  8. 8. Problems of Rule of Thumb Not Accurate Not Profit Based Quick and Nasty Thursday, 11 July 13
  9. 9. Thursday, 11 July 13
  10. 10. 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
  11. 11. Thursday, 11 July 13
  12. 12. For More Information On Your Business Valuation BCI Business Brokers Tony Arena (Managing Director) 3/1 Alexander Street, Crows Nest, NSW, 2065 Phone: +61 2 9439 3399 Mobile: +61 411888148 Email: tarena@bc.com.au Thursday, 11 July 13
  13. 13. Thursday, 11 July 13
  14. 14. To Maximise Your Business Value Visit www.bc.com.au/maximise.html Thursday, 11 July 13
  15. 15. Thursday, 11 July 13
  16. 16. To Know More About Valuing A Business Thursday, 11 July 13

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