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Value Determinants in an Ambulance Business

July 7, 2011 By Sozo Staff Leave a Comment

In an ambulance business, just as in any business, there are certain factors that contribute to the business’s value. It is especially important to consider these factors when the business is up for sale. For example, you must determine the amount of time remaining on contracts. A business whose contracts still have multiple years until they expire presents much less risk to a potential buyer than a business whose contracts will expire six months after purchase. Also, consider the life remaining in the equipment and the costs of replacements.

If the equipment is aging and will soon need replacing, factor the costs of replacement into your decision. Also, the depth of management can be important to a potential buyer because if there are many competent people helping to keep the business healthy, it will be able to function reasonably well even without input from the buyer, making the business sale much more attractive.

Filed Under: Business

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