OT: Question about selling a business

[bigbet1234]

I have read numerous things on how to value a business; from the years you have into it, profits, expected profits, etc....

How do you put a value on a business?

 

[sean1]

I'd use earnings and pick a multiple based on sustainable growth rate.

Sean

 

[Romanowski]

everything youve already stated and sean has + assets

real estate, equipment, etc

 

[5iveDaggers]

3 years net profit should be the starting point

 

[joeyfitzclick]

99% of businesses are WORTHLESS.

 

[bigbet1234]

I have the 1%, lets hear it

99% of businesses are WORTHLESS.

 

[juice]

Thought you can get an accountant to do an appraisal.

The weird thing is putting a number value on intangibles, .ie., goodwill

 

[valium]

99% of businesses are WORTHLESS.

Sounds like a guy that is interested in buying.

 

[bigbet1234]

:monsters-

 

[WVU]

so you want to sell your Wedding Cake business?

 

[Hitman26]

3-5 years of net profit is what a Subway sandwich shop goes for.

 

[Romanowski]

3-5 years of net profit is what a Subway sandwich shop goes for.

Are you saying ROI is 3-5 years

 

[Hitman26]

I'm saying that if a store nets 100k for the owner per year after every expense has been paid (execept income tax for the owner), then the store will sell for around 300k. If you start your own store from scratch you can get in for around 120k and you should be able to clear about 60-100k (before income tax), but one is taking on much more risk as opposed to buying an established store.