The Intelligent Exit: The Business Owner's Guide To A Winning Strategy For Selling Your Company by Carmichael Mark
Author:Carmichael, Mark [Carmichael, Mark]
Language: eng
Format: epub, azw3
Publisher: Paperboy Publishing
Published: 2017-10-14T16:00:00+00:00
Lehman formula: Developed in the early 1970s, it became an accepted formula through the 1990s, as it was a 5-4-3-2-1 tiered structure, meaning:
5% of the first $1 million
4% of the second $1 million
3% of the third $1 million
2% of the fourth $1 million
And so forth, with a 1% charge on everything
above $4 million
Today, the original Lehman formula is no longer sustainable, due to the inflationary effects since it was first introduced more than 40 years ago. Today, the Double Lehman Formula is more popular, in which each percentage is doubled:
10% of the first $1 million
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