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A prospective buyer is thinking about purchasing a small business. The following facts have been gathered: 200.000 20% 30,000 Tangible networth (assets minus liabilities) Desired
A prospective buyer is thinking about purchasing a small business. The following facts have been gathered: 200.000 20% 30,000 Tangible networth (assets minus liabilities) Desired earning power (investment): Owner-manager salary: Average annual net earnings (net profit): Extra earning power is estimated to be of value for: How much should the buyer offer for the business? 120,000 three years Select one: a. 450,000 b. $250.000 G C. 550,000 d. 5350,000
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