Post by account_disabled on Mar 7, 2024 9:22:17 GMT 5.5
It is common for any partner of a professional firm to ask us: How to value my advice to sell it? How much is my office worth? Question to which we usually respond with “what your office is worth does not have to match the price they pay for your office.” That said, let's see what criteria are followed to determine the value of an office. Value of an office according to billing Until a few years ago, and especially before the 2008 crisis, offices were valued according to billing.
It was the criterion mostly used, mainly Asia Mobile Number List because it was assumed that, at that time, the firms had stable profitability over time. Now, saying that it is valued based on billing does not mean that they pay you the annual billing. When this criterion is followed, the value of the office can range from 0.7 to 1.2 times the billing of the office. And what it depends on. We return to the same thing, its profitability, but also other factors that we will comment on later.
Value of an office according to profitability If we talk about how to value my advice to sell it, we must take into account that currently, the valuation of the office involves a more detailed analysis of it. Now not only billing is taken into account, but also its profitability. To do this, the EBITDA (earnings before interest, taxes, depreciation and amortization) is used and multiplied by a factor between 4 and 6.
This will result in a value of the shipment and, at the same time, the estimated return period of the investment by the buyer. Rate my advice What other aspects will the buyer consider when evaluating my advice to sell it? The buyer will also take into account other aspects that will also condition his final economic offer. Salaries, qualifications and professional categories of workers. The wage bill must not exceed the limit of 65% of turnover. The service model offered and the technological level of the office The client portfolio: its typology, concentration… The location of the office Brand awareness and positioning These are some of the criteria that allow the office to be evaluated. The price will also depend on potential buyers, market situation and trend, among other aspects.
It was the criterion mostly used, mainly Asia Mobile Number List because it was assumed that, at that time, the firms had stable profitability over time. Now, saying that it is valued based on billing does not mean that they pay you the annual billing. When this criterion is followed, the value of the office can range from 0.7 to 1.2 times the billing of the office. And what it depends on. We return to the same thing, its profitability, but also other factors that we will comment on later.
Value of an office according to profitability If we talk about how to value my advice to sell it, we must take into account that currently, the valuation of the office involves a more detailed analysis of it. Now not only billing is taken into account, but also its profitability. To do this, the EBITDA (earnings before interest, taxes, depreciation and amortization) is used and multiplied by a factor between 4 and 6.
This will result in a value of the shipment and, at the same time, the estimated return period of the investment by the buyer. Rate my advice What other aspects will the buyer consider when evaluating my advice to sell it? The buyer will also take into account other aspects that will also condition his final economic offer. Salaries, qualifications and professional categories of workers. The wage bill must not exceed the limit of 65% of turnover. The service model offered and the technological level of the office The client portfolio: its typology, concentration… The location of the office Brand awareness and positioning These are some of the criteria that allow the office to be evaluated. The price will also depend on potential buyers, market situation and trend, among other aspects.