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When one wants to sell a business

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When one wants to sell a business daytona° 05-24-2007
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Posted by daytona° on May 24, 2007, 7:26 pm
Is there a rule of thumb to the askling price?




Posted by Rick Blaine on May 24, 2007, 7:32 pm

>Is there a rule of thumb to the askling price?

I suppose it depends on the location, type of business, condition of the books
and a host of other factors. You might want to contact a local business broker
and see what they say.

--
"Tell me what I should do, Annie."
"Stay. Here. Forever." - Life On Mars

Posted by daytona° on May 24, 2007, 7:54 pm
The broker then will stand there with his hand out....even if you were not
selling the business nor wanting him to sell the business
I just thought that someone on the group would a the rule of thumb factor
going....like a certain times your gross pay or draw
No brokers yet....they become worse than car salesman or real estate sales
people

>
>>Is there a rule of thumb to the askling price?
>
> I suppose it depends on the location, type of business, condition of the
> books
> and a host of other factors. You might want to contact a local business
> broker
> and see what they say.
>
> --
> "Tell me what I should do, Annie."
> "Stay. Here. Forever." - Life On Mars



Posted by Jake on May 24, 2007, 8:16 pm
daytona° wrote:
> The broker then will stand there with his hand out....even if you were not
> selling the business nor wanting him to sell the business
> I just thought that someone on the group would a the rule of thumb factor
> going....like a certain times your gross pay or draw
> No brokers yet....they become worse than car salesman or real estate sales
> people
>

I've looked at this scenario more than once... any business owner who is
successful and large enough will.

There are 'old' rules-of-thumb.... which I won't mention because...
frankly.. they don't apply anymore.

Solid customer base, along with assets.... establish the value. As with
everything else anymore, "it's only worth what someone will pay!".

Talk to a broker that deals with your type of business. There are
national outfits that specialize in such things. The most cash comes
from big-boys wanting to move into new geographical areas or eliminate
competition.

I have a division of Emerson Electric barking at my door occasionally. A
broker contacted me about their interests. Eventually, if we continue to
do well... the price might get high enough. Right now it's not... but I
have a lot of dough in vehicles and equipment that are marketable
'elesewhere'... plus... it would have to be "fuck-you" money at this
point... an incredible premium.

Either I'll get it or retire a bitter, broke and tired old guy in 20
years with nothing but war stories (-;. That's the gamble you take...
and I'm taking it....

Jake



Posted by Bubba on May 24, 2007, 9:38 pm
Speaking as one who sold their hvac business back in 99 to a large
company, I dont have any magic as to what you can ask for the
business. In the end, the purchaser is only going to pay what they
think it is worth.
I can tell you that what they are interested in is:
Service Agreements
Customer base (made up of actual useable customers)
Your phone number
Your company name
Tools and trucks are considered minor unless you have a fleet of brand
new vans.
You building is usually worthless to them.
Bubba

wrote:

>The broker then will stand there with his hand out....even if you were not
>selling the business nor wanting him to sell the business
>I just thought that someone on the group would a the rule of thumb factor
>going....like a certain times your gross pay or draw
>No brokers yet....they become worse than car salesman or real estate sales
>people
>
>>
>>>Is there a rule of thumb to the askling price?
>>
>> I suppose it depends on the location, type of business, condition of the
>> books
>> and a host of other factors. You might want to contact a local business
>> broker
>> and see what they say.
>>
>> --
>> "Tell me what I should do, Annie."
>> "Stay. Here. Forever." - Life On Mars
>

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