Looking to have this thing sold on Jan 1st. Already have a potential buyer but we haven't talked specifics on price. We do a lot of projects togther currently and work together well. How do I figure on a price? last years net plus assets?
Selling my biz
- Thread starter mikewhite85
- Start date
Help Support Arborist Forum:
D&B Mack
Sawin Wit It!
Much more to it than that. First, most typically use as a profit reference, the last 3 years...minimum.
Do you have any long term contracts?
Do you have a "PROVEN" repeat history of customers?
Your assets must also be evaluated not just for current value, but also replacement cost must be taken into effect.
Example; say you turned a $100k profit last year and your equipment is worth $50k...that would be $150k. But if your equipment's useful life is coming to an end and your equipment is just beginning its useful life; that will move that number down and up respectively. If it is the former, the next few year's profits (given all else remains the same) will be expected to go down; if it is the latter, the profits will expect to go up.
Depending upon who is buying your business, they may look at net or gross pending upon their current state of business. (New business owners tend to look at net, existing business owners tend to look at gross)
2treeornot2tree
Dont cry, just do it
The problem when aquiring a business, is that you only retain 25% of the customers the second year. Customers, and contracts are almost worth pennys on the dollar. Most of the cost of a business comes from equipment.
Similar threads
