Lance E
May 23rd, 2002, 05:09 PM
Customers Lists carry value in most businesses that involve any retail activity, the tricky part is how to value them.
We recently had to do this, in NZ there is not much information available regarding values from other such transactions. What we did was take the list, determine the sales to the people on the list over the past two years and predict a "lifetime" value (relevant to sales for the current owner) for the entire list, this results in a figure upon which we based the value as a small percentage.
This did result in a reasonable and justifiable value, is this the right way to have gone about such a process? How would you take on such a task?
Lance Enevoldsen
We recently had to do this, in NZ there is not much information available regarding values from other such transactions. What we did was take the list, determine the sales to the people on the list over the past two years and predict a "lifetime" value (relevant to sales for the current owner) for the entire list, this results in a figure upon which we based the value as a small percentage.
This did result in a reasonable and justifiable value, is this the right way to have gone about such a process? How would you take on such a task?
Lance Enevoldsen