Can someone help interpret these figures for Me?

[lawsjs]

True. But it's not easy making it pay more than someone with probably more experience in that particular business than you.

Can we agree that if at all possible, it is an 'ex-gratia' payment that is best avoided?

I am not talking of not paying for operating profit. That is a genuine item based on hard evidence. 3 years of tax returns etc etc. Question there is (even in a listed company - Enron/Lehmans?) Do you actually believe those figures?

 

[Aaron_C]

haha yeah - well most businesses for sale always show lower figures than what they claim. It's always 'more than what's on the books'

 

[Macca]

Goodwill value, to me very much depends on the business type and location. If you are buying a business that is easy to copy and can find a similar location then goodwill is not valuable at all.

If the business is hard to set up or enjoys a good reputation locally then goodwill is of value. If you buy a business today, it is a comforting feeling to know that when you open the doors tomorrow someone will come in and spend some money with you

I usually started with bare walls, an advertising campaign and soul full of hope

All my buyers paid me goodwill and all said to me later, great business thanks.

If I was buying, I would spend a lot of time outside counting heads and multiplying by an amount of typical customer $$ spend

 

[Hulkster]

A recent example of small cafe with cooked books


http://www.themercury.com.au/article/2011/07/23/247731_scalesofjustice.html