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What is the general rule for selling your business. $500,000 in sales.

I don't really understand all the termanology. What are they looking for with Cash Flow? Is that the same as Net Income? Can you evaluate your business by total Retail Sales? It seems pathetic to have paid $59 to have my business evaluated by BBS and they only ask one question.

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Answers (7)
Gerald Kong
Trinity Transaction Advisory, LLC
TX
Premium Broker

That is pathetic, but a truly valid busienss appraisal, performed by someone who is credentialed, will typically cost $1,000 - $3,000 depending on the assignement. If you are trying to sell your business, you need a limited scope appraisal of fair market value with price justification modeling. This is what we order for our clients. One source we use that is the best is www.nationalbvs.com. You can get a theoritical model that is worthless from anyone, but what you need to see is an actual transaction structure that can be funded.

Mar 24, 2011
Steve Bennington
The Paragon Group (West USA Realty)
AZ

Please give me a call at 602-540-9604. Our company, Prudential American Business Brokers, will provide a business evaluation for no charge.

Mar 16, 2011
Ed Resha
IPCF, Inc
CA

Where is your business located? Have you developed a profit and loss statement? How long have you been in business? Sole proprietorship or corp? Typw of business, (service, retail, food etc)? Brick and mortar or on line(e-commerce)? Employees? Lots of questions so call me for a quick answer. I've been doing business brokerage for 40 years. If you've gotten your answer then good luck to you.

Feb 28, 2011
Ed Resha
IPCF, Inc
CA

Where is your business located? Have you developed a profit and loss statement? How long have you been in business? Sole proprietorship or corp? Typw of business, (service, retail, food etc)? Brick and mortar or on line(e-commerce)? Employees? Lots of questions so call me for a quick answer. I've been doing business brokerage for 40 years. If you've gotten your answer then good luck to you.

Feb 28, 2011
Steve Skrlac
Keystone Business Brokers Inc.
Business Brokerage Services in Ontario, Canada

If you have any business in Canada don't hesitate to call me either. I can go over some valuation principles and give you a rough ballpark based on some brief information.

Feb 23, 2011
Susan J. Tanko-Manogue
Susan Juanette Tanko P.L.L.C, WCI Broker
AZ

No need to ever pay anyone to tell you what your business value is unless you need a full blown evaluation. Call me to talk general terms over the phone or better yet let's get together to come to a more "in depth" conclusion. NO charge AT ALL until I sell it for you and we close escrow.

Susan Tanko-Manogue 602-795-2005 ext 105. 10 years experience selling businesses right here in AZ!

Feb 7, 2011
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The BAF Group LLC
MD

Why not ask them? If they charged you - even a modest sum like $59 - they should answer your questions about their service.

You can't tell anything from Gross Revenue. Cash Flow is the Net Profit, adjusted to reduce one time expenses, and so-called "discretionary expenses" such as Interest paid. If you are paying a note for when you purchased the business, and took a note to do so, you are paying Interest. When you sell, you would pay off your own note, and the Interest paid becomes a function of Cash Flow. In other words, Cash Flow is the amont of money that the Buyer would anticipate, if he/she maintained your current level of Sales and Expenses, and it includes all Expenses except his/her own Income and Debt Service. And even the Owner's Salary can be estimated, in the Cash Flow analysis.

It is intended to provide the Buyer with a level playing field, in understanding what he/she should anticipate, in terms of earnings; however, depending upon how it is done, some Sellers or Brokers play fast and hard with the estimates, and it can be very misleading.

If you want specific questions answered, give me a call. I don't charge $59 to answer questions.

Jan 13, 2011

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