CALCULATION OF BUSINESS VALUE
METHOD #1
Calculation of Average Sales for most recent 4 years
Year Sales
2006 0
2007 0
2008 0
2009 0
Average 0
These averages sales are evaluated according to the following calculation criteria. You are given a high end and low end value to assign to sales. Select the number you feel most comfortable with. This is for the calculation of goodwill:
Calculation Criteria High End Low End
$350,000 $450,000 $0.30 0.20
$450,000 $550,000 $0.60 0.45
$550,000 $650,000 $0.90 0.65
$650,000 plus $1.00 0.75
Calculation of Goodwill (Multiply the Sales figure in each range by the end value number you select. These go where the zeros are. This is from a spreadsheet that I could not attach.) This is shown using high end valuation number.
Sales Range
$350,000 $450,000 $0 $0.30 $0
$450,000 $550,000 $0 $0.60 $0
$550,000 $650,000 $0 $0.90 $0
$650,000 $800,000 $0 $1.00 $0
Sum is total goodwill evaluation Sum
Value of Goodwill $0 (total of number above)
Book Value of Equipment $0
Value of Inventory at Cost $0
Appraised Value of Land $0
Appraised Value of Building $0
Total valuation $0
Supply the figures where there are zeros and add them all up to get a business evaluation.
If someone can tell me how to attach an Excel spread sheet I will do it for all three methods, or I will email it to somebody who can attach it , or send me an email address and I will email it to you personally. This is one method of three different evaluation methods that I have. Hopefully you can understand this