I didn't say that. I said, given what we know, the valuation falls into a
certain range. It could certainly be lower, as I indicated. If so, the ROI
could be higher. We don't know the earnings and we don't know whether the
owners take salary or the net earnings as their sole compensation. I don't
think the business can be dismissed on what we know now. That said, I'm as
dubious as you are.
73, Dick WC1M
> -----Original Message-----
> From: Bert Almemo [mailto:balmemo@sympatico.ca]
> Sent: Friday, March 07, 2008 7:51 PM
> To: wc1m@msn.com; 'Joe Subich, W4TV'; 'Bill N1eY';
> towertalk@contesting.com
> Subject: RE: [TowerTalk] I.C.E. - Company for sale
>
> Hi guys,
>
> Most of you seem to be very optimistic!! Without being long winded
> you're
> basically willing to accept an annual ROI of 10%, take on a risky
> venture
> and invest a lot of money to turn it around. You are basically saying
> you're
> going to wait 10 years just to get your money back without having a
> salary??
> I don't think so!
>
> 73 Bert, VE3OBU
>
>
>
> -----Original Message-----
> From: towertalk-bounces@contesting.com
> [mailto:towertalk-bounces@contesting.com] On Behalf Of Dick Green WC1M
> Sent: Friday, March 07, 2008 5:28 PM
> To: 'Joe Subich, W4TV'; 'Bill N1eY'; towertalk@contesting.com
> Subject: Re: [TowerTalk] I.C.E. - Company for sale
>
> Joe is on target here.
>
> Business valuations are a significant part of my professional work.
> Most of
> what I do concerns venture capital investments, which are often more
> of an
> art than a science, but I'm familiar with standard valuation methods
> for
> going concerns. Making assumptions about the information left out of
> the
> ebay description, I used several methods and came up with a range of
> $200K-$600K for the business. It's quite possible that the valuation
> is less
> than the low end of that range. It's conceivable it could be higher
> than the
> high end, but very doubtful. It all depends on the actual sales
> history,
> gross margins, overhead, earnings, inventory, fixed assets, debt,
> liabilities, capital requirements to sustain the business, etc. Also
> depends
> on how much of the business is concentrated in amateur radio versus
> the
> larger commercial and government sectors, and whether the revenue
> decline is
> due to factors other than impending retirement. Very important to
> assess
> demand for the products. Another critical factor is how much would
> have to
> be invested in the business to grow it back to previous revenue levels
> or
> beyond. The devil is in the details.
>
> 73, Dick WC1M
>
> > -----Original Message-----
> > From: Joe Subich, W4TV [mailto:w4tv@subich.com]
> > Sent: Friday, March 07, 2008 3:58 PM
> > To: 'Bill N1eY'; towertalk@contesting.com
> > Subject: Re: [TowerTalk] I.C.E. - Company for sale
> >
> >
> > > No way can you sell a small business in a down sector at more than
> > > 20 times the sales. Plus, we don't know what the earnings are
> > > currently. Who want to buy a business at P/E of 40?
> >
> > Absolutely correct ... $900K is generous. On a good day, $900K
> would
> > be 8 to 10 times gross margin on $600K in annual sales.
> > Debt service on $2.7 million is more than expected gross margin on
> > sales!
> >
> > 73,
> >
> > ... Joe, W4TV
> >
> >
> >
> > > -----Original Message-----
> > > From: towertalk-bounces@contesting.com
> > > [mailto:towertalk-bounces@contesting.com] On Behalf Of Bill N1eY
> > > Sent: Friday, March 07, 2008 3:24 PM
> > > To: towertalk@contesting.com
> > > Subject: Re: [TowerTalk] I.C.E. - Company for sale
> > >
> > >
> > > It is at the most absurd price. No one sells a business on Ebay,
> > > either. They probably went to a business broker that said perhaps
> > > 900k for the business at the best. No way can you sell a small
> > > business in a down sector at more than 20 times the sales. Plus,
> we
> > > don't know what the earnings are currently. Who want to buy a
> > > business at P/E of 40?
> > > You would never make your purchase price back.
> > >
> > > Sorry to be so negative, but I had to look because it sounded so
> > > interesting to me!
> > >
> > > bill
> > > n1ey
> > >
> > >
> > > Barry wrote:
> > > > That's a lot of bandpass filters :.) Barry W2UP
> > > >
> > > > Terry wrote:
> > > >
> > > >> And they accept PayPal if you decide to buy it! :-)
> > > >>
> > > >> 73 de Terry KK6T
> > > >>
> > > >> Greg Clark wrote:
> > > >>
> > > >>
> > > >>> Saw this today, on eBay of all places. Take a look at eBay
> > item:
> > > >>> 250221413049
> > > >>>
> > > >>> Or, do a general search on eBay for Industrial Communications
> > > >>> Engineers.........starting bid, $2.7M.
> > > >>>
> > >
> > > _______________________________________________
> > >
> > >
> > >
> > > _______________________________________________
> > > TowerTalk mailing list
> > > TowerTalk@contesting.com
> > > http://lists.contesting.com/mailman/listinfo/towertalk
> >
>
>
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