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quick sense check

Posted by Ding Dong PM | on Tue, 22/01/2013 - 12:23  475  7 comments | report

No I'm not looking for a free professional valuation just a quick one sentence (yes I know it is not that simple but.....)

Client has a plant hire business (cranes) and does very well. T/over £1m, profit (before divis) £300k. No finance, no debt. They simply hire out the cranes they own.

Cranes have a market value of £600k.

Client asked in an email today - if I were to put my company on the market - what would I get?

Obviously, as I said above, there is no quick answer, but I am guessing a multiple of profits (say 3) as adjusted for salaries and the value of the cranes (lets assume no other assets/liabilities)

If it were 3x plus cranes the value would be something like £1.4m - any very brief thoughts welcome, I am seeing him this evening to sign his TR and a pint!

Offers please!

Comments
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Ignore the crane valuation

zarathustra | Tue, 22/01/2013 - 12:45
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Should have asked on Twitter DD

Paul Scholes | Tue, 22/01/2013 - 13:07
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my starting point

gerrysims | Tue, 22/01/2013 - 13:09
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The important thing is ...

Old Greying Accountant | Tue, 22/01/2013 - 13:20
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Thanks all

Ding Dong | Tue, 22/01/2013 - 13:22
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Normalised profits

Ben Smith | Tue, 22/01/2013 - 14:45

just a quick update

Ding Dong | Tue, 22/01/2013 - 21:15
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