> Most of you seem to be very optimistic!!
I don't think any of us are being optimistic ... we're all saying
the $2.7M asking price is far from reality. Since there is no
real estate or large fixed capital base, depending on assumptions
for gross margin and discount rate, a fair value for the business
assuming the high end of current sales volume is sustainable would
be between $200,000 and $500,000.
> 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!
Salary has to be part of the cost of doing business although there
is not much room for a reasonable salary in $300,000 of gross sales.
ROI on any business purchase has to come from the ability to grow
the business.
73,
... Joe, W4TV
> -----Original Message-----
> From: towertalk-bounces@contesting.com
> [mailto:towertalk-bounces@contesting.com] On Behalf Of Bert Almemo
> 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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