Company Valuation

Posted by AccountingWEB PM | on Fri, 16/07/2004 - 15:02 2453 13 comments | report

I am negotiating to take a third share in an IT company. The company in question has been trading for just over a year and provides mainly consultancy services but also retails hardware

Does anyone have any suggestions as to how I should value the company? T/O was £100k in the first year, with retained profits of £5k after dividends (other 2 shareholders are main employees and take most of their income through dividends)

Being mainly consultancy driven, tangible assets are fairly insignificant, the value being derived from goodwill

Also, are there any tax implications I should consider?

Thanks in advance
Mark Ward

Comments

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To continue.....

MikeyBaby | Thu, 22/07/2004 - 18:23

Sane advice

martinfoley07 | Thu, 22/07/2004 - 14:40

Why are u considering buy any interest in the co ?

twickers | Tue, 20/07/2004 - 20:29

IR35?

SteveAnderson | Wed, 21/07/2004 - 00:41

Share options instead?

AnonymousUser | Tue, 20/07/2004 - 17:52

ignorance may not be bliss

martinfoley07 | Tue, 20/07/2004 - 17:53

David's position

MikeyBaby | Tue, 20/07/2004 - 14:42

Valuation

MatthewDuggan | Tue, 20/07/2004 - 15:12

Is it appropriate to look at turnover?

AnonymousUser | Tue, 20/07/2004 - 15:36

Business Valuation Software

AnonymousUser | Tue, 20/07/2004 - 10:45

Valuation?

dahowlett | Tue, 20/07/2004 - 16:23

Valuation

gbms | Sat, 17/07/2004 - 21:45

Shareholders agreement

gbms | Sat, 17/07/2004 - 21:52