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Re: waterchaser post# 6259

Wednesday, 03/21/2012 2:44:20 PM

Wednesday, March 21, 2012 2:44:20 PM

Post# of 54206
Based on several things.

(1) Quote from the company that ASCC was a "highly profitable company"

(2) My experience in a construction related field. Most Contractors average a gross net profit of 30%. That is average, not considered highly profitable. At a 30% profit on 7 million dollars worth of annual business, 2.1 million gross net profit prior to taxes.

(3) My experience with selling a privately held company to a publicly held company.. our sale was for 4 times annual revenue, and probably could have got more had we negotiated abit more. We also had a asset sale structured for tax purposes.

(4) Now if EVDR sold ASCC at a minimum 3x gross net annual profit, what would the total sale be worth?
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