Goodwill purchase

Goodwill purchase

Didn't find your answer?

If i pay £18,000 for goodwill which generates £4,500 pre tax profits per annum - does this look like a good deal?

Brian

Replies (4)

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By martinfoley07
03rd Aug 2005 23:50

.....good grief.....
.....Brian, what an extraordinary question.
If you wish to give some meaningful information about what you have acquired, then someone may be able to comment in a meaningful way.

Please seek some proper advice from a sensible adviser ( do NOT assume accountants will all necessarily be sensible advisers re purchase or sale of a business - many are, many are not)

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By tonyturner
05th Aug 2005 18:09

WOW
25% return? Guaranteed? Interest costs in purchasing the goodwill? If it's a risky return probably overpriced, if not, it's probably cheap. Sounds OK based on brief information supplied.

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By AnonymousUser
08th Aug 2005 11:02

depends
The answer depends on how hard you have to work to make the money.

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By dicklloyd
09th Aug 2005 22:27

As Ever - It All Depends........
The answer depends on a number of factors - including how hard you have to work to make the return. But also including:

Risk

Cash flows

Dependence on others

Reliability of those others (if any)

Longevity of the business/project

etc. etc. etc.

This question really is pretty meaningless without alot more info.

I suggest that you carry out a SWOT analysis, and a PEST/SLEPT analysis to get a feel for some of the factors you would need to consider.

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