Sole trade valuation pre incorporation

Sole trade valuation pre incorporation

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I am valuing a sole trade for incorporation.
I am using a multiple of estimated maintainable earnings.
Should i deduct a hypothetical salary before applying the multiplier?
If so how do you calculate this?
What would it be for a full time manager or an owner manager?
Is it reasonable to take 50% of retained profits as salary and multiply the remainder?
Barry

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