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
31st Oct 2005
0
Sole trade valuation pre incorporation
Sole trade valuation pre incorporation