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Subject:  Re: Valuation of an engineering firm Date:  12/2/2011  10:03 PM
Author:  pauleckler Number:  1559 of 1664

I would think you would want to give careful consideration to what it would cost to create an equivalent firm on your own.

Most engineering companies probably have few assets other than staff, and their reputation and relationships that allows them to bid on and get new contracts.

Hence, you are acquiring mostly reputation and staff. Finding the value of the hard assets is the easy part. But you would think the value is strongly tied to future sales and a sales agreement that reflected that would be most desirable.
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