Yes, and we all probably do it the same way. No point in paying more to the IRS if you can buy some more gear and give some bonuses. But you can point that out in the negotiation. Cash converted to assets and growth of assets and net shareholders equity is something that is not ignored.
Sometimes a business is simply worth the net sharholders equity. From: Tyson Burris Sent: Monday, January 6, 2020 10:24 AM To: AnimalFarm Microwave Users Group Cc: memb...@wispa.org Subject: Re: [AFMUG] Company Valuation I disagree. Revenue minus expenses is profit. Finding a WISP who expenses correctly can be difficult. Even I pull my hair out on all the expenses and various ways you can expense items. Profit times X is the selling price. I was just speaking with my wife about this and complaining about how high our profit margins are. The more profits the more taxes paid. So ideally you want to expense out as much as possible, take dividends, pay yourself more etc. so profits aren’t high. The problem is a buyer wants to see your profits so it’s a nightmare of a fine line. Taxes vs. Selling. Tyson Burris, President Internet Communications Inc. 739 Commerce Dr. Franklin, IN 46131 Daytime # 317-738-0320 Cell/Direct # 317-412-1540 Online: www.surfici.net What can ICI do for you? Broadband Wireless - PtP/PtMP Solutions - WiMax - Mesh Wifi/Hotzones - IP Security - Fiber - Tower - Infrastructure. CONFIDENTIALITY NOTICE: This e-mail is intended for the addressee shown. It contains information that is confidential and protected from disclosure. Any review, dissemination or use of this transmission or its contents by unauthorized organizations or individuals is strictly prohibited. From: AF <af-boun...@af.afmug.com> On Behalf Of CBB - Jay Fuller Sent: Monday, January 6, 2020 10:08 AM To: af@af.afmug.com Cc: memb...@wispa.org Subject: [AFMUG] Company Valuation Lets say for easy math purposes you bill approximately 1.5 million annually. I've heard 1.5 times annual revenue thrown around for a valuation purpose. There is a lot more to this figure but it's a place to start. So, if your company billed 1.5 million, you'd say your valuation was around $2.25 million. If you had 90 towers on your network - and you owned 60 of them (the steel, not the land they're on) , would you consider your network worth more than if you rented all 90? My take on this is yes, they could all be taken down and converted to cash, so the fact we own towers vs. rent them makes our network more valuable. What say you? Thanks. -------------------------------------------------------------------------------- -- AF mailing list AF@af.afmug.com http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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