The Deal Board Podcast
Rules of Thumb

Episode 27

Rules of Thumb

"Business Valuation"

Description:

Andrew and Jessica have talked on previous episodes about valuation; one of the methodologies is the market method which compares past sales, multiples of earnings and percentage of sales to the sales price. It is one of the most reliable approaches for valuation and what eventually comes out of these data points are rules of thumb. These rules of thumb are backed up by statistical analysis of deals and closes in specific industries; the natural variations between one market and another are reflected in the rules of thumb, which are used to estimate a business value and industries benchmarks, like costs of sales, percentage of rent, materials cost, labor cost and even pick up anomalies. Listen to the experts talking about rules of thumb, who also bring some interesting cases in specific industries.

Key takeaways:

[1:03] Andrew and Jessica talk about Rules of Thumb.

[13:30] Ron West, Business Brokerage Press. The Business Reference Guide.

[14:33] History of Ron West’s family in the business and of the Business Reference Guide.

[19:20] Industry Experts.

[25:20] 605 Industries and franchises listed in the business reference guide.

[26:48] Deal of the week: Joe Santora (North Carolina, Triad) Mobile grooming pet franchise. SBA finance with seller note. Call Joe at 336-355-0250 or email triad@tworld.com.

[28:20] Listing of the week: Joe Santora (Triad) Multi-location gun store in North Carolina. Price for businesses: $590,000. Price for real estate: $369,000.

Show Notes:

Mentioned in this episode:

Tweetables:

Joe Santora (Triad) Multi-location gun store in North Carolina. Real estate available in one of the locations. Open for 12 years. 100% absentee owner. Price for businesses: $590,000. Price for real estate: $369,000 (does not include inventory, listed at $760,000) STE for both location $200,000. Call Joe at 336-355-0250 or email triad@tworld.com.

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