The business is in manufacturing. Gross sales of $2,000,000 per year. Net profit about 34% 6 years old. Steady and stable growth form the begining. Set up as an S Corp
2006-07-10 01:10:01 · 2 answers · asked by Anonymous in Business & Finance ➔ Small Business
Business is in California.
2006-07-10 01:10:53 · update #1
Yes 34% net is correct
2006-07-10 03:07:29 · update #2
I wouldn't sell a business with that profit margin. 34% net? do you mean 3-4%? I can't think of many businesses that you'll be able to make that kind of margin.
If you need to sell, I would look at a business broker in your area to maximize the sale price. If the profit margin really is that high and you own assets, you need a salesman to market the sale. Eventhough the broker will cost you a lot of money, selling the biz could be extremely profitable if you can do it. I don't know manufacturing, but worth is usually 2 times yearly profit plus assets. So really, you're selling your potential cash flow and I would sell that as soon as I could...trying to sell your own biz is very hard. Brokers will screen calls and attract buyers.
2006-07-10 02:54:53 · answer #1 · answered by Iloveitwhenyoucallmebigpoppa 2 · 0⤊ 0⤋
You should consider working with a lawyer or reputable business broker that specializes in manufacturing companies to be sure the sale goes smoothly.
2006-07-10 01:32:33 · answer #2 · answered by TradeConsult 4 · 0⤊ 0⤋