there are many ways to do this but a few of the guidelines are a multiple of sales--could be 1.5 or 2 times sales or more depending on the buyer or business being sold or a multiple of profits. On profits it is often 2 times or more again depending on the profitability as a per centage of sales. There is a good out of print book that may still have copies floating out there on Amazon or B&N titled How To Price a Profitable Company by Paul Baron. IT gives good guidance. Another source of current information is a business broker who will know the prevailing multiples in your particular business niche. But do yourself a favor and get more than one opinion. Just in case you are getting low- balled or, just as bad or worse, high-balled. Better to get a fair assessment or unrealistically high expectations will keep you from selling at the right price. The right price is one you feel comfortable with and can walk away from the biz without remorse. Feeling its the right buyer can also help the price feel right even if it is a little bit less than you envisioned. good luck with your sale.... Anthony Vlamis Intellagent Communications Solutions 1775 Plank Road Forestburgh, New York 12777-6803 845-794-2930 ----- Original Message ----- From: "Marcia Yudkin" <marcia at yudkin.com> To: <hidden-discuss at lists.hidden-tech.net>; "Stefan Gonick" <stefan at DatabaseWebWorks.com> Sent: Wednesday, January 24, 2007 4:56 PM Subject: Re: [Hidden-tech] Price to sell a business > ** The author of this post was a Good Dobee. > ** You too can help the group > ** Fill out the survey/skills inventory in the member's area. > ** If you did, we all thank you. > > >> I am considering selling a business that I own (BriefDating.com), and I >> am trying to figure out a reasonable selling price. It's my understanding >> that the price of a business can be calculated as a multiple of the >> annual >> profit. Does anyone know what this multiple is? I heard that it is a > higher >> multiple than when calculating the price based a multiple of annual > revenue. > > Stefan, > > Inc. Magazine recently had most of one issue devoted to this, an issue or > two or three ago, with massive detail. Look it up on their web site or in > your local library. > > Marcia Yudkin > > + + + + + + > > Affordable new naming service for new business names, new product names > and > tag lines that set your company on the path to success. > http://www.namedatlast.com > > Weekly Marketing Minute newsletter on creative marketing: > http://www.yudkin.com/markmin.htm > > _______________________________________________ > Hidden-discuss mailing list - home page: http://www.hidden-tech.net > Hidden-discuss at lists.hidden-tech.net > > You are receiving this because you are on the Hidden-Tech Discussion list. > If you would like to change your list preferences, Go to the Members > page on the Hidden Tech Web site. > http://www.hidden-tech.net/members