6 {{ upvoteCount | shortNum }}
6 {{ upvoteCount | shortNum }}

How do you evaluate the price of your web agency if you're looking for an exit?

by Carl Fridsjö
5 replies
Hey guys,

Just as the topic says. Do you guys have any examples of people who have sold businesses in our industry and how much they cashed out? I'm interested in rather small businesses here, below 50 employees and such.

Thanks
#agency #evaluate #exit #price #web
  • Profile picture of the author Aaron Doud
    Why cash out?

    If you have the employees in place to run it why not just enjoy the semi passive income? If someone makes you an offer for the business down the road that is cool too but why sell it if it can run without you?

    And if it can't run without you why would I or anyone want to buy it?
    Signature
    Aaron Doud - Sales & Success
    {{ DiscussionBoard.errors[7092476].message }}
  • Profile picture of the author Carl Fridsjö
    You do have a point but there could be many circumstances that makes you look towards a sale. You need a big cash injection for something else, being one obvious that comes to mind. Anyways, I'm not in this position I'm just curious.
    Signature
    Connect with me on LinkedIn!

    Click To Find Out How The Offline Forum Is Building A Library
    {{ DiscussionBoard.errors[7092508].message }}
  • Profile picture of the author Aaron Doud
    Normally you are a multiple of EBITDA of say 2 to 10.

    For these kinds of business I would guess 3 aka 3 years worth of EBITDA would be the selling price.

    Some might do net profit vs EBITDA then the multiple.

    If you take a salary you may have them add that back into the amount if you are not actively needed to run the business. Otherwise they will figure your salary is needed to hire someone to run the business.
    Signature
    Aaron Doud - Sales & Success
    {{ DiscussionBoard.errors[7092803].message }}

Trending Topics