For Sale Website:
The owners want to sell the company for $1,200,000. Through developing the financial forecast, we found that the Internal Rate of Return is 12.56%. This is greater than the WACC we calculated of 11.57% and over the next 10 years, the Blue Heron has a net present value of $88,522 based on many assumptions. For information on how we came to this conclusion and the assumptions that we used, please download the attached spreadsheet. These numbers could change dramatically based on average occupancy rate, cost of labor, maintenance, taxes, and industry growth.
Based on this information, we have come to the conclusion that this would be a wise investment. Through the analysis, we were able to find that the company is actually worth $1,284,867. With our spreadsheet you will be able to change values and see how things would be different in different situations. $1,200,000 is a reasonable price for potential investors!