Rules of Thumb – Janicek Valuation & Forensic Services, PLLC

Are Rules of Thumb Appropriate Valuation Methods for Litigation Matters?

Rules of thumb exist for several types of businesses. They were developed by business brokers over time, based upon actual sales transactions involving businesses in a particular industry. While a rule of thumb can provide buyers and sellers of businesses with an

Are “Rules of Thumb” Useful in Business Valuations?

Rules of Thumb are generally expressed as multipliers. A common example would be that some particular type of business will sell for .75 to 1.50 times annual revenues. Another popular multiple is a multiple of discretionary earnings. For example, a particular type of business is said to sell for X times Seller’s Discretionary Cash FlowContinue reading “Are “Rules of Thumb” Useful in Business Valuations?”