[Hidden-tech] Price to sell a business

[Anthony Vlamis]

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


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>> 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
>
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