Friday, April 04, 2014

Blog Series - Business Valuation - Customer List

One of the most difficult aspects of business valuation is setting a value to intangible assets.  Tangible assets are easier to set a monetary value to.  You know how much they cost to begin with and there are depreciation formulas to determine the value of tangible assets over time.  Intangible assets tend to start with no value, and then gain value over time.  Here is some information on how to value one of the most difficult intangible assets, a customer list.

Customer lists are about loyalty.  They are currently a customer because they like the service or product that is being provided by the current owners.  When you buy an existing business with a loyal following, and you plan on offering the same product or service before, the current customer list can be an essential building block to get your business rolling.  But how can a value be assigned to a list of names, addresses, and customer history?  Well, here are some tips.

Valuation of Customer-Related Assets

Due Diligence - Valuing Customer Lists

4 Steps for Calculating Customer Value

Value is in Customer Relations, not Customer List

Buying Customer Lists

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