He is basically asking 9x net sales for the whole sha-bang. I was thinking more like 5.
Any multiplier should be based on Net Profit
. I'm not even sure what you mean by Net Sales for a food truck. Over the years, I've done a ton of Pro Formas for various businesses and Net Sales is a line item that is used if you sell a product that is subject to return by the customer, or is discounted.
In calculating Net Profit, it's important to understand if it's before or after EBITDA ( Earnings before interest, taxes, depreciation and depreciation). I suggest you sit down with a qualified accountant to determine fair valuation
post edited by jman - 2013/12/18 07:03:46