Thread: Sell It All?
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Unread 07-06-2011, 09:09 PM   #4
PCDoctor_1979
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Valuing a business is far from an exact science. I used to do business valuations in my former life in public accounting. The main issue is that your two most valuable assets don't show up in your books. Those are your cooking skills and your customer list. If the buyer has adequate skills and can retain your customers, then we you can start with an old rule of thumb valuing the business at some multiple of your average earnings over the past several years. Keep in mind that "earnings" are the net profit shown on your tax return plus what you paid yourself each year. Depending on the circumstances you could ask for as much of 7 to 10 times that amount. Given the current business climate, I doubt you could get that much today. Feel free to PM me with questions. You can also do a Google search on how to value a service business. Best of luck!
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