Buying & Selling a Business
If you’re looking for businesses to buy, there are online resources available to help you such as:
- BizBuySell.com: business purchasing site
- Franchisegator.com: franchise purchasing site
The most traditional way of valuing a business is by using a multiple of net income or profits.
- If you were trying to sell a service corporation, they often go for one time their gross receipts for the year. For example, if you were trying to sell a law firm, and this firm in gross receipts did a million dollars the year before, that will be a general price range that people will be looking for.
- If you have a product-based business, then you will be looking at 3-10 times the multiple of net income. The faster a business is growing (increase in net income), the greater the multiple you’ll receive.
For more info on starting a business, check out this free course on How to Start a Business: The Complete Guide.