Business valuation : Rule of Thumb

Often this question crops up in business discussions about how to value a business.

Every industry has its own way of valuing. Actual valuation is ultimately a matter of negotiation but some bench mark is needed as a guide post for both parties to start negotiations.

Like in our own accounting business : value is usually 110% of the annual revenues.

I came across a gem during my recent studies, have a look via link below:

This gives a basic rule of thumb used in valuing different businesses.