Post by account_disabled on Mar 7, 2024 3:48:30 GMT
Before you stop to think about how to know the price of a consulting firm in operation to buy it, you should keep in mind that if the firms do not have experience in purchasing portfolios or professional firms, they do not usually make correct assessments of the firm to buy. On the other hand, whether they have experience or not, the valuations that are made only take into account the financial aspects and leave aside other intangibles that are also important for the valuation. Financial valuation Annual billing has been a criterion that has been widely followed when determining the price of a consultancy or office.
When this criterion is followed, the Asia Mobile Number List 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. But, currently, the most used financial criterion is the EBITDA (earnings before interest, taxes, depreciation and amortization), which is multiplied by a factor between 4 and 6. This EBITDA should not include income and expenses that are not derived from the usual advisory activity. This will result in a value of the shipment and, at the same time, the estimated return period of the investment by the buyer.
Price of a consultancy But, what other aspects should we consider when evaluating an office? Other aspects must also be taken into account Salaries, qualifications and professional categories of workers. The wage bill must be in optimal terms with respect to billing. The service model offered and the technological level of the office The client portfolio: its typology, concentration... For example, in general portfolios with companies have a better valuation than portfolios of self-employed workers and portfolios with a client that represents a very high percentage The location of the office Brand awareness and positioning These are some of the criteria that allow an assessment or price of a consultancy to be made . The price will also depend on potential buyers, market situation and trend, among other aspects.
Our recommendation: it is important that you know exactly what your professional office is worth and that you work on the aspects that can help improve it. To do this, have the study of your office carried out by an expert who knows how to value a business and who also knows the sector and helps you work on those aspects that make your office worth more. At Izquierdo Motter we can help you. You can also follow us on LinkedIn , where we share valuable information and knowledge about the professional law firm and consultancy sector, focusing on innovation, sales and marketing in this sector.
When this criterion is followed, the Asia Mobile Number List 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. But, currently, the most used financial criterion is the EBITDA (earnings before interest, taxes, depreciation and amortization), which is multiplied by a factor between 4 and 6. This EBITDA should not include income and expenses that are not derived from the usual advisory activity. This will result in a value of the shipment and, at the same time, the estimated return period of the investment by the buyer.
Price of a consultancy But, what other aspects should we consider when evaluating an office? Other aspects must also be taken into account Salaries, qualifications and professional categories of workers. The wage bill must be in optimal terms with respect to billing. The service model offered and the technological level of the office The client portfolio: its typology, concentration... For example, in general portfolios with companies have a better valuation than portfolios of self-employed workers and portfolios with a client that represents a very high percentage The location of the office Brand awareness and positioning These are some of the criteria that allow an assessment or price of a consultancy to be made . The price will also depend on potential buyers, market situation and trend, among other aspects.
Our recommendation: it is important that you know exactly what your professional office is worth and that you work on the aspects that can help improve it. To do this, have the study of your office carried out by an expert who knows how to value a business and who also knows the sector and helps you work on those aspects that make your office worth more. At Izquierdo Motter we can help you. You can also follow us on LinkedIn , where we share valuable information and knowledge about the professional law firm and consultancy sector, focusing on innovation, sales and marketing in this sector.