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Re: None

Wednesday, 03/07/2012 5:37:06 PM

Wednesday, March 07, 2012 5:37:06 PM

Post# of 54205
One more thought concerning the price per share. It would also depend on their accounts recievables and how they turn. In construction related businesses and the projects they were running, I would think a 90 day turn on recievables would probably be acceptable. Also how much bad debt they write off in a year. With the company that I sold our recievables averaged a 22 day turn, which was exceptionally good. In addition we had very little bad debt, less than 2 percent of sales. I had a gal that was a bulldog in credit, and I also weekly looked at all past dues over 30 days. Would make a difference in the sale price as well.
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