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Selling a business

CosmopupCosmopup subscriber Posts: 2
edited February 2007 in Business Planning
My business partner and I are considering selling our current business.  We actually have someone interested in it. It is a cleaning business for both residential and new construction home builders.  My question is, how do we go about deciding on the selling price?  Our overhead is pretty low, but the money generated from the customers on a yearly basis is pretty good.  How do we determine what the company is "worth"?  Thanks for any and all help.  We are new to startupnation and find it very helpful.
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    patentandtrademarkpatentandtrademark subscriber Posts: 103
    Make sure to include the value of your intellectual property - patents, trademarks, copyrights, trade secrets, etc...
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    stonesledgestonesledge subscriber Posts: 608 Silver Level Member
    I would suggest getting it valuated by a professional and them helping you with the deal.
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    ShubhShubh subscriber Posts: 0
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    It is good that your business needs small overhead expenses
    and the revenue is good. But, if it is so, why you are selling it? Many times,
    we see that owners sell their business because of the small phases of downtrend
    or other small problems. While the buyers, register tremendous growth with same
    business. So rethink? Yes, annual revenue would be the main criteria to judge
    the price.
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