Question on how much to sell a Business For?
by Web Master on Friday, June 1st, 2012 | 1 Comment
How would you calculate how much money to sell a business for , this is a small Home based Franchise That someone wants to buy from me and I am not sure how to come up with a Dollar amount to sell it for please Help , Best Answer 10 Big Points and maybe a Percentage , LOL , just Kidding.
Income Statement: EBITDA/15% is reasonable. In other words; Operating Cash Flow divided by 15%.
EBITDA = $5,000.00 per year.
Value of Business = $5,000.00/.15 = $33,333.33
Income Statement: EBITDA/15% is reasonable. In other words; Operating Cash Flow divided by 15%.
EBITDA = $5,000.00 per year.
Value of Business = $5,000.00/.15 = $33,333.33
References :