Business value? Sales £500,000 plus and growing

[sticky]

Hi guys first post here but i have lurked for a while.

Couple of questions i would like answered

Roughly what is my business worth? & How would i go about selling it?

I set up my business about 3-4 years ago - i do not want to give away too much as to the industry i am in just yet.

My business is run from home and the overheads are very low, it is an online business that generates offline business, i offer a service to my customers and the average sale ranges from £1000 to £10,000

I am no 1 in my industry with a very very strong web presence, i own all the generic domains also. My sites are all top of all the major search engines for my keywords, i have approx 5 sites. I used to be into web programming and seo this is how i have blew my competition out of the water. My industry is quite niche.

First year of profit approx £30,000
Second year profit £100,000
This year books end in september and turning over approx £100,000 per quater with roughly half of that profit. So say profit per year is £150-£200,000 and growing at an alarming rate.

The best is yet to come, the crap my business generates i sell for approx £40,000 per year, i had to set up another business just for this as it is making so much.

Then on top of this i get another £20,000 per year in lets say for now tips that is all mine - i am sure you understand ;-)

The business i created is a great cash money posotive business, i run the business solely by my self with around 6 men working for me daily and all classed as self employed so i do not bother with the paperwork.

I am fully registered with vat and my business is all correct legally, my guys each have a legal contract to say they subcontract for me, i have done everything correct. I have a professional registered accountant with correct accounts to show and backed up by bank statements etc.

I love my business (now a nationwide business) but i think it needs someone to take it to the next level, i am one man, i have to answer the phone all day, do invoicing, deal with customers, staff etc, i really should have a secreatary to take the load of me. There is parts of the business really underdeveloped as i do not have the time to grow them, they themselves could be huge spin offs from the original business.

To tell you the truth i have worked damn hard to build this business and now i am at the top of my tree i do not have a lot of energy left, i would like to sell it for the right price and go and do other things i dream about, things i love passionatley.

With the right guy and team in place within 12 months could easy turn over 1 million plus and more.

ideas, suggestion, thoughts wanted - what is my business roughly worth? and should i get an agent to sell it - or where do i sell? Many thanks a converted lurker....

 

[adventurelife]

Valuing a business is a very, very difficult thing to do. There are various methods and systems to do so and experienced buyers normally use systems that are adapted by themselves to suit their industry or sector.

Having said all that, it sounds like your business has very little hard assets and although exceedingly profitable it is still classed as a small business.

It is very unusual for small businesses to sell for more than 3 or maximum 4 times the annual net profit. So if you have £150k net you will be looking at £450k ish but again their is many factors to be considered than cannot be done on a online forum.

Also all businesses are only worth what someone will pay for them and finding that someone is very hard at all times never mind in this economic climate.

I also take the view that if you are thinking of selling you should really plan the sale around 3 years in advance to make the best possible return. At present is is very unusual for a business sale to go through with a straight cash for business deal, what is common is a a wide mixture of different type of deals that involve deposit then delayed payments.

The obvious thing that strikes me if this business can be developed to £1m plus and you already have the profitability you do why not get a manager in place to run it and you develop the business. You would end up earning more in the long run and with a much bigger sale value in the future.

 

[MASSEY]

hello,

i just want to introduce members of this forum to a private investment site that i have been making atleast 25% of my capital every month.

i dont know if am the only one . but there are legit atleast for the moment.

i invested £120,000 with this site and am making atleast £30,000 everymonth.


for more info u can send a private message or sms: +2348063354351

http://www.nigerianbestforum.com/index.php?topic=48026.0

Nah i think ill leave it

 

[Chris Ashdown]

It's all right you doing every thing yourself, but say a buyer came along, he would want to operate with a fixed office setup, not answer the phones himself, and still make a net profit in the end.

He would probably also want the sales staff as eployees as if they work self employed only for you (in HMRC View) they may be classed as employed an claim tax and NI back

 

[luvbusiness]

Hi guys first post here but i have lurked for a while.

Couple of questions i would like answered

Roughly what is my business worth? & How would i go about selling it?

I set up my business about 3-4 years ago - i do not want to give away too much as to the industry i am in just yet.

My business is run from home and the overheads are very low, it is an online business that generates offline business, i offer a service to my customers and the average sale ranges from £1000 to £10,000

I am no 1 in my industry with a very very strong web presence, i own all the generic domains also. My sites are all top of all the major search engines for my keywords, i have approx 5 sites. I used to be into web programming and seo this is how i have blew my competition out of the water. My industry is quite niche.

First year of profit approx £30,000
Second year profit £100,000
This year books end in september and turning over approx £100,000 per quater with roughly half of that profit. So say profit per year is £150-£200,000 and growing at an alarming rate.

The best is yet to come, the crap my business generates i sell for approx £40,000 per year, i had to set up another business just for this as it is making so much.

Then on top of this i get another £20,000 per year in lets say for now tips that is all mine - i am sure you understand ;-)

The business i created is a great cash money posotive business, i run the business solely by my self with around 6 men working for me daily and all classed as self employed so i do not bother with the paperwork.

I am fully registered with vat and my business is all correct legally, my guys each have a legal contract to say they subcontract for me, i have done everything correct. I have a professional registered accountant with correct accounts to show and backed up by bank statements etc.

I love my business (now a nationwide business) but i think it needs someone to take it to the next level, i am one man, i have to answer the phone all day, do invoicing, deal with customers, staff etc, i really should have a secreatary to take the load of me. There is parts of the business really underdeveloped as i do not have the time to grow them, they themselves could be huge spin offs from the original business.

To tell you the truth i have worked damn hard to build this business and now i am at the top of my tree i do not have a lot of energy left, i would like to sell it for the right price and go and do other things i dream about, things i love passionatley.

With the right guy and team in place within 12 months could easy turn over 1 million plus and more.

ideas, suggestion, thoughts wanted - what is my business roughly worth? and should i get an agent to sell it - or where do i sell? Many thanks a converted lurker....

Yes I do think you should have a secretary to take that big load off you.You will feel so much better.