Whats it worth ?

[CharlieH]

A business has been offered, sales about 300k per month, net profit 200k per month, established 6 yrs, sale as going concern, no stock carried, internet based.

Whats it worth guys ?

[David48]

Is the website (Domain) being included in the sale?

What is being 'sold' ... is it a franchise?

Are there suppilers contracts in place?

Ability to replicate the existing business by others?

Exclusion clause that forbids the seller to re-enter the market as a direct competitor.

220k / month ... are there books to review?

... and I'm just starting ...

[CharlieH]

Yes

No

Not required

Yes, but has unique advantage.

If required, yes.

Yes financials can be viewed.

Only looking for a ball park figure of worth, as it is negotiable, just wanted others guesstimates based on those figures and assuming it ticks all your boxes.

Edited June 8, 2014 by CharlieH

[onthemoon]

Google for "what is my business worth" and other relevant phrases. There are formula and even excel files out there, you just fill in some figures and get a negotiating base.

"Goodwill" is excluded. That's the value of the brand name in the market. If you cannot gauge that, you probably shouldn't buy a company in a market you don't know.

[CharlieH]

Google for "what is my business worth" and other relevant phrases. There are formula and even excel files out there, you just fill in some figures and get a negotiating base.

"Goodwill" is excluded. That's the value of the brand name in the market. If you cannot gauge that, you probably shouldn't buy a company in a market you don't know.

Thanks for that, tried one or two and it came out at 2.5 mil, I had previously thought about 3 so, I wasnt too far out, but "goodwill" is a factor here too, but atleast there is a base figure to work from. Edited June 9, 2014 by CharlieH

[N47HAN]

Goodwill could equate to at least that value , depending on brand awareness it could be worth far more.

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[onthemoon]

Goodwill could equate to at least that value , depending on brand awareness it could be worth far more.

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Sure. Some wise man said (at least we are told at business school that he said): "If I have the choice of either buying the Coca Cola factories or the brand name, I will always take the brand name."

Alas, not every brand has as much Good Will (brand awareness, brand recognition etc) as Coca Cola. This thread is about an SME.

[N47HAN]

Goodwill could equate to at least that value , depending on brand awareness it could be worth far more.

Sent from my GT-N7100 using Thaivisa Connect Thailand mobile app

Sure. Some wise man said (at least we are told at business school that he said): "If I have the choice of either buying the Coca Cola factories or the brand name, I will always take the brand name."

Alas, not every brand has as much Good Will (brand awareness, brand recognition etc) as Coca Cola. This thread is about an SME.

Yes correct ,

However we are also only talking around 2 million in brand awareness too .

Not really a great deal of money and have seen a few SME within Thailand obtain several multiples of that in good will over the years that have sold.

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