Your firm currently has $180,000 in assets and $30,000 in debt business. Financial records show the most recent EBITDA to be $90,000 and recent the most net income to be $20,000. You (the entrepreneur) paid yourself a salary that is $10,000 higher than the current market rate. Based on the past growth of your firm and the current outlook for your industry, you think a multiple of # is appropriate. Assume a profit multiple of 2.

pt 1:

starting number: add back: adjusted number: multiple: value: subtract: quick and dirty value:

pt 2:

Would you be willing to sell the firm for $100,000? yes or no

pt 3:

Would you be willing to sell the firm for $200,000? yes or no