Hi all
When someone wants to sell their business in Vietnam, how do they establish how much it's worth - the sale price?
Cheers
Peter Goudge
Vietnam - what formula is used to value a business?
Peter Goudge
13 February 2013 16:00:57
37
Anatta
13 February 2013 16:16:17
1063
Not much difference from how you sell business in other countries.
What method: depends on how sophisticated the sellers/buyers are.
Easiest is using some kind of multiplier: e.g.,
Revenue* multiplier 1= sales price
EBITDA* multiplier 2= sales price
Profit after tax * multiplier 3 = sales price.
More sophisticated methods: discount cashflow, EVA,... but don't think you need to know about them.
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