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What would be asking price for business nets 70k year?

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Answers (3)
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

No offense, Hasir, but I find your answer remarkably facile, if not glib, without further details.

Respectfully,
Julie A. Barnes, CPA
President, SBX, Inc.
http://www.AustinBusinessesForSaleBlog.com

Apr 5, 2010
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Fine Investments
Cook County, IL

if its ona long term lease its worth about 2.5 times ebitda and if its with the property it could range from 5-6 times ebitda.

Apr 5, 2010
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Hello Ken,

Your question raises a multitude of other questions. For example:

Has the business consistently netted 70k or have profits been on the decline?
Does the business own substantial assets?
Does the business require expertise?
How old is the business and how much of its success is due to the owner?
What is the cash flow? (Add back non-cash expenses)
What are the tax benefits (e.g., phone and vehicle expenses)?
Will current employees stay on?
Is there a lease and if so, do you qualify to assume?
Do tax records substantiate a net profit of $70k?

I could go on - ad nauseum - but it might be easier if you would simply visit my blog:
http://www.AustinBusinessesForSaleBlog.com for free advice on how to evaluate a business. There are NO simple formulas.

Good Luck!
Thanks,
Julie A. Barnes, CPA
President, SBX, Inc.

Apr 5, 2010

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