Followers | 2 |
Posts | 280 |
Boards Moderated | 0 |
Alias Born | 08/14/2017 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Monday, November 27, 2017 12:05:49 PM
You have to know NOBODY in their right mind would sell their company (or brand) for only 1 year's sales. That's not how businesses being sold are valued...
It could also be a legit company that has done $300K + $190K + $260K or $750K so far this year. F he did another $500M in 4th qtr, at 2X Sales, that’s a Company worth $2.25M. If a buyer offered that and Richie accepted, 51% of that goes to ICNB or $1.14M.
I don't think the CEO could possibly be so ridiculous as to let it go at a fire sale price. It simply wouldn't make any sense...
Bob Adams’s Simple Valuation Guidelines
1. An extremely well-established and steady business with a rock-solid market position, whose continued earnings will not be dependent upon a strong management team: a multiple of 8 to 10 times current profits.
2. An established business with a good market position, with some competitive pressures and some swings in earnings, requiring continual management attention: a multiple of five to seven times current profits.
3. An established business with no significant competitive advantages, stiff competition, few hard assets, and heavy dependency upon management’s skills for success: a multiple of two to four times current profits.
4. A small, personal service business where the new owner will be the only, or one of the only, professional service providers:?a multiple of one times current profits.
Obviously, neither Bellissima nor ICNB fall into category 4 as you had suggested. My personal guess would be at least somewhere between category 1 and 2.
Bare minimum would be twice the sales... Not very likely he would give such an outrageously good deal to anybody with such fast growth, though.
The sales price will partially depend on how high revenues are built up to at the time of the sale.
It's anybody's guess what the upper multiple would be when it comes time for a sale, but I do not believe it will be only 1.
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM