Originally posted by Edt
Firstly if you are the company, then 1 million a year for 12 consultants sounds light, 1.5 is more like it.
Selling it is a different matter, I personally wouldn't give you 5p for a 12 man band who earnt 1.5 mill last year. I would however give you something for the unearned value in your recurring contracts, and if it could be shown you had some heavyweight repeat customers (i.e. you've worked with them consistently for 3 or more years) then the goodwill may be worth something.
Back in the glory days a consultancy team would be 'valued' (not necessarily sold for) 8 times turnover (back in the days when consulting was like prinitng money now its more like recycling it, its still profitable just not quite as good). Nowadays if you meet the conditions above I guess you could get somewhere between 0.8 to 1.5 times turnover depending on debt and retained funds. However if you haven't got the staff handcuffed and the contracts running for a significant length you are likely to the square root of FA.
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