Tag: Calculating the Value of a Business
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Calculating the Value of a Business – Discretionary Income Multiplier Formula
In the world of small business, the sale of a business is dependent on two critical elements. They are DISCRETIONARY INCOME and the BUSINESS RISK MULTIPLIER. These two elements are multiplied to create the overall value of the business operation. In general, no small business operation is worth more than three times the discretionary income.
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The Cost of One Putt
Using a large database, I calculated the average cost of one putt for each professional golfer. In business, this is known as the marginal cost of doing business.