This is hypothetical.  A small consultancy firm [5 years old] serving
a niche market operates in 5 countries in S.E. Asia and produced an
annual after tax income of US$600,000 against revenue of US$2,500,000
the last year.  All the 5 branches are equally profitable.  The
business has no fixed assets of any significance.  Nor has it any
liabilities. The growth rate has tapered off to about 5 percent per
annum from the 3rd year partly because of owners’ intention to keep
the business manageable.  The business has potential for growth within
these 5  S.E. Asian countries and there is an immediate business case
for opening new branches in the South Asia and the Far East.  If the
owners intend to sell the business, what factors would an established
consultancy consider in arriving at the offer price?  Please also
estimate the offer price.