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What ratio of selling price to cash flow is best to attract a buyer? Also, what cash flow are most buyers loo

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Answers (3)
Blake Taylor
Synergy Business Brokers
Premium Broker

Kimberly, My advice would be to contact a local broker in your area that has experience selling similar businesses to the type of business you own. They would then evaluate your financial information and other information about your business to determine a potentially selling price. I service the NY, CT, NJ area. If your business is in my area and you are interested I would be happy to discuss the details of your business with you.

Mar 13, 2014
Armin Laidre
Fast-track Your Business Sale

Kimberly, a good way to "defend" your asking price is to make use of business valuation based on DCF (Discounted Cash Flow). In that case, you are not relying on any wild guess ratios. Check this calculator for example:

Mar 12, 2014
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The BAF Group LLC

It depends on a huge number of factors, most of which revolve around the ability of that business and its industry to continue and grow, after the sale. For example, a company that maintains its customers through long term contracts will sell for a higher level than one which relies on clients that use its products or services on an "as needed" basis. One that has a strong, national brand will usually - not not always - sell at a higher level than one that is a local, unbranded business.

Mar 9, 2014

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