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need subjective advice please. experts are you here?

Expert help needed.

We have a business we have been running on an occasional basis. every time we do the business brings very good returns under 8 k profits net per 30 day period. We do stick anything and we use a great network of vendors to find what we need at the time of sale.

We have been doing this professionally and also doing it in a way to limit our monthly expenses to run the business. so it has always been profitable.

We are in a cash bind now and we would like help valuating it and selling it with us running it for the new owners. The dilemma is how to value a business that is mainly a brokerage business but with qualities that are important in this market such as low overhead, minimal risk as far as buying product that may or may not sell, low advertising costs, and no capital to inject initially.

any advice? or interested buyers?

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The BAF Group LLC
MD

Brokerage-like businesses are predominately sold on an earn-out basis. This means you would get a certain amount down - perhaps 30% of an agreed price - then the remainder over time, as a percentage of Gross or Net Revenue. (Go for the Gross!) Without knowing the specifics of the business and seeing financial statements, it is difficult to say much more with any certainty. But when you say you are in a cash bind, do you mean you are in a personal bind, or a business cash bind? I take it you mean personally, since you state there is no capital required, initially.

Aug 23, 2010

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