How to determine total value of business for sale
I need to determine the total value of a business for sale (for real estate
class). I would like to do this with an excel template. I am not an expert
in Excel, and don't even know how to begin. Here is an example of what I
need to be able to input and get the resulting value:
Applying a 10% cost of capital to the tangible assets & given economic
earnings of $72,000, a fair wage amount of $50,000, total tangible assets of
$96,000, a capitalization rate multiple of 2, and a depreciation reserve
amount of $6,000. Using the above, I want to get the total value of the
business for sale.
Anyone with any ideas of how I can do this..I would be very appreciative. I
have set up the templates to determine the individual items above, but can't
seem to get it all into a template to determine value calculations.
Thanks in advance
Marge
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