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Earnings times a multiple is not a good way to calculate Blue Sky Value. In most cases the result is underpriced. I have built a web site to easily review the proper calculation. Within the Blue Sky Evaluation web site there are three screens to analyze your pricing.
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Data Entry; three or five year Dec YTD statements
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Upside predictions; Data Entry trends compared to planning volume, one to one new to used units, Fixed operations stall productivity and dollar to dollar labor to parts ratios
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Return on Investment and Repayment time; ROI greater than 15% and repayment less than 7 years is the barometer for Blue Sky.
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Tim Lamb Group, LLC
Corporate Office
4449 Easton Way, Suite #200
Columbus, Ohio 43219
Tel: 239.919.0448
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