How to put a value on your internet business?

5 replies
Hi,

I am actively trying to sell my half of an E-commerce company that I started up. I own half of the company, and my investors own the other half.

It has been running for approx. a year now and is profiting well over $10k after expenses. And is growing consistently each month due to new customer base and reorders from past customers.

It is hard to gauge the value. I don't want to get rich, just my fair share and move on.

Please offer suggestions, thank you!
#business #internet #put
  • Profile picture of the author WesBlaylock
    It used to be the profit that a company makes over the last 3 years in business determines the value.

    But with how everything has changed so much since I heard that, I have no idea if that is still the general thinking.

    With your company being so new, I wouldn't expect to get much more than the profit that it has made in the last year (or a percentage of that based on your stake).
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  • Profile picture of the author cchipster
    Thank you guys' for your input...
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    No signature, I'm sure you will be ok.
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    • Profile picture of the author agmccall
      I had an offer for my golf club business, the company that was negotiating for the buyer said they pay for 5-10 years of sales.

      So if your site is making 10k a year then you should be able to sell for 50-100k

      al
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      "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

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      • Profile picture of the author cchipster
        Originally Posted by agmccall View Post

        I had an offer for my golf club business, the company that was negotiating for the buyer said they pay for 5-10 years of sales.

        So if your site is making 10k a year then you should be able to sell for 50-100k

        al
        $10k a month
        Signature
        No signature, I'm sure you will be ok.
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  • Profile picture of the author Rod Cortez
    Originally Posted by cchipster View Post

    Hi,

    I am actively trying to sell my half of an E-commerce company that I started up. I own half of the company, and my investors own the other half.

    It has been running for approx. a year now and is profiting well over $10k after expenses. And is growing consistently each month due to new customer base and reorders from past customers.

    It is hard to gauge the value. I don't want to get rich, just my fair share and move on.

    Please offer suggestions, thank you!
    Hire a competent CPA firm that has business valuation experience. Problem solved.

    RoD
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    "Your personal philosophy is the greatest determining factor in how your life works out."
    - Jim Rohn
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