1. Two to three times annual cash flow, but can vary widely depending on the business, which we refer to as the Seller's Discretionary Cash (SDC) or net adjusted cash flow before interest and taxes.

2. Value of equipment and inventory plus one year's cash flow.

3. Three to twelve months gross sales, depending on type of business.

4. Excess earnings method - a fair market value of the assets plus a premium of goodwill.

NOTE: Realty Investment Specialists utilizes a variety of methods in valuing a business. Price is usually related to cash flow, and varies with the financing terms agreed upon. Price will also depend on the type of business and the future potential, among other factors. True value is what a buyer agrees to pay and a seller agrees to accept (without undue pressure).