How to Value a Tree company?

[Mike Hill]

The time has come for me and my Business partner to go our separate ways.

 

I am wondering how the Value of a Company is calculated?

 

The Value of the Tools is easy,but how do you calculate the value of the Company name?

Good Will?

Income potential?

 

 

Many thanks

 

Mike

[Tom D]

generally speaking goodwill is worth very little unless there is some significant contracted future work, which is unlikely in tree work. Speak to a good accountant.

[Mike Hill]

generally speaking goodwill is worth very little unless there is some significant contracted future work, which is unlikely in tree work. Speak to a good accountant.

 

Ok,good to know.We have no contract work per se.Its practically all domestic.

 

The company name?

Web domain?

 

Etc.

[combined tree services]

From my understanding the valuation of a business is based on the figures provided by your acountant , im not overly sure how a name is valued as its is dependent on the specifice of the name Ie - D&S tree services would in theory be worth far less than a name such as 1st for arb .

[delabodge]

The time has come for me and my Business partner to go our separate ways.

 

I am wondering how the Value of a Company is calculated?

 

The Value of the Tools is easy,but how do you calculate the value of the Company name?

Good Will?

Income potential?

 

last three yrs accounts,,would be the first thing i`d look at,

Many thanks

[Mike Hill]

The time has come for me and my Business partner to go our separate ways.

 

I am wondering how the Value of a Company is calculated?

 

The Value of the Tools is easy,but how do you calculate the value of the Company name?

Good Will?

Income potential?

 

last three yrs accounts,,would be the first thing i`d look at,

Many thanks

 

Calculate on net proffit?

 

I see Tree Companies advertised for not alot more than what the gear is worth.And to me they seem to stay advertised for quite a while.

[Tom D]

The name, website and phone no's are worth a bit if you do a lot of domestic work, It takes a while to get established and get your name out there. I'd value my name etc at about 30k as I have now got a good client base and have not done any advertising this year yet been very busy. Its a hard thing to value though, at least you are part of the setup already, I'd be loathed to spend that kind of cash on a setup I didn't know.

[combined tree services]

 

Calculate on net proffit?

 

I see Tree Companies advertised for not alot more than what the gear is worth.And to me they seem to stay advertised for quite a while.

 

The biggest problem it that often people do not get acurate valuations and mearly attach a price tag that they feel they would like to get back .

 

im not totally sure but i believe that the calculation is something like assets + net proffit+ calculation for name and advertising etc + net value for all works currently booked to be carried out = value

[Mike Hill]

 

The biggest problem it that often people do not get acurate valuations and mearly attach a price tag that they feel they would like to get back .

 

im not totally sure but i believe that the calculation is something like assets + net proffit+ calculation for name and advertising etc + net value for all works currently booked to be carried out = value

 

That sounds like a sound blue print for negotiations.

[Johny Walker]

The time has come for me and my Business partner to go our separate ways.

 

I am wondering how the Value of a Company is calculated?

 

The Value of the Tools is easy,but how do you calculate the value of the Company name?

Good Will?

Income potential?

 

 

Many thanks

 

Mike

 

mike, are you staying in tree work, are you thinking of buying the other 1, out ,

value the assets ,then pay him 50% of ther value,then pay him 50% of the last yrs profit ,does that sound right or am i missing the point

 

johny