NEED OPINIONS ON VALUATION
I found what appears to be a great business but the owner and I have vastly different opinions on valuation. I wanted to get group opinions on price based on the following basic information.
Service based business with business to business sales.
Very high margins, recession resistant, and appears to be poised for growth of at least 10% annually.
$400K, projected SDE for the next 12 months.
Almost all the discretionary earnings are profit since it requires minimal equipment maintenance/investment.
The business has minimal transfer risk and requires only minor inventory/working capital.
Any of your thoughts on the price would be appreciated.