Hello all. I am on the verge of making an offer for an existing business. It is a service business with very little assets (a truck and a forklift). He has one employee that he pays on a 1099 contract basis about 35K a year). He is on pace to net about 120K this year, and he netted 90K last year. The business is over twenty years old. He is getting rid of it because he is seventy two. He has accounts which pay him monthly, and as of June first he had 328 accounts, although this number fluctuates somewhat because peolpe drop his service, and obviously he gets new customers too. It is a swimming pool service company for the record. He wants to structure the sale so that the new owner takes complete control over the business from day one. I would assumehis business bank account, which has 45K in it. He is asking 400K. Is this a fair price for this business, and how do you generally determine the price of a business? I would assume his position, and he works 3 days a week.
2006-06-27
12:06:41
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2 answers
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asked by
res_1979
1
in
Small Business