5 Rules to Remember when Selling Your Business

Posted by AngelBiz under Management
From http://www.smallbizviewpoints.com 2223 days ago

Selling a business is a long and arduous process. Use these tips to prepare your business beforehand for sale and get the best price.

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Comments

Written by BusinessExits
2222 days ago

>>Let’s say a normal P/E ratio is 15, and the projected earnings are $200,000 a year. If this is the case the business would be worth $3 million.

Seriously?! You've seen any small businesses with $200K or so in earnings selling for 15x?

Small businesses usually go for 2x to 6x (and 6x is highly optimistic). I'm afraid you're giving people the wrong impression with your mention of 15x. It's only very large (usually stock market listed) companies that go for over 10x.

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