has anyone got any ideas about goodwill, we are looking at buying a kennels business with a turnover of $118.000.00 per year with nett profit of $84.000.00 goodwill of $127.000 is this acceptable? regards ozzpom[blink][blink][blink]
For good stuff on business, look at the books by Brad Sugars.
What is the total business cost? I think you would generally want to make back your purchase costs in 1-2 years. eg a $84,000 profit = purchase price of between $84,000 to $168,000.
But businesses vary so much, it is hard to generalise.
Terryw
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A very general rule is that the profit should pay back goodwill within 3 years, It sounds OK but what is the $84 k profit made up of, why are they selling, is the profit sustainable, etc
You are best to see an accountant for advice, they shouldn’t charge more than a couple of hundred for a basic valuation
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