quick sense check | AccountingWEB

quick sense check

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!

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Ignore the crane valuation

zarathustra |
zarathustra's picture

Should have asked on Twitter DD

Paul Scholes |
Paul Scholes's picture

my starting point

gerrysims |
gerrysims's picture

The important thing is ...

Old Greying Accountant |
Old Greying Accountant's picture

Thanks all

Ding Dong |
Ding Dong's picture

Normalised profits

Ben Smith |

just a quick update

Ding Dong |
Ding Dong's picture