How Much Should I Sell A $6Million Annual Revenue Company?

by 13 comments
I was seeing that companies get sold every here an there either they get acquired or sold to a different owner etc.

My question is how much do they sell for an how do you determine the cost Say a software company is a turn key business making 6million annually profit is say 5.5 million what do you ask when you sell?
(Average not exact of course estimate)

On the other hand a clothing company brand etc say is doing $6 million annually an profits about $3 million take home money what would be the asking price in this


Software $6 million revenue annually profit $5.5million
(500k in expenses etc)


Clothing $6 million Annual Revenue Profit $3million
(3 million in expenses etc)


What would you sell for an why ?

Thanks

-Scoopy
#main internet marketing discussion forum #$10million #$6million #annual #company #revenue #sell #selling
  • Profile picture of the author rkcc4
    Does not matter what the business, it is always a multiple of net profits and ability to continue making them
  • Profile picture of the author Affiguy
    Sure, there can be numbers of reason for selling. But when you announce your business for sale it certainly devalues it a bit.

    It would be good to figure out something to prompt your competitors to buy your business. Make them do an offer for you first. In this case, you can increase your price 5-7 fold. It all depends on your negotiation skills.

    Good luck!
  • Profile picture of the author sloanjim
    rubbish!!!

    if it is in ahot/newish industry with many years of great grwoth ahead it's going to sell a lot higher than an old worn out, dying industry for sure!

    Does not matter what the business,
  • Profile picture of the author sloanjim
    hmmm...I rarely believe this excuse..i guess it happens from time to time but my guess most of the time they are bailing for a reason...


    Sometimes you want out explore other avenues or move into a different niche.

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