Sale Value Of Your Business

What value do you put on your Business if you were to sell it ?



Probably 2 to 3 x provable annual net profit…depending on market and other factors…maybe more and maybe less. But, that is a starting point anyway. :cowboy_hat_face:

Thanks Larry, we are on the same page so far.


Will you be staying on to run the business? No? Then those assumptions mean nothing. We all know that no two inspectors are the same. That applies to business acumen also!!
IMO, only the tangible ‘assets’ of the company have any intrinsic value. There is no value in a “promise”.

For some…:sunglasses:

Jeff and Larry are both right, the traditional way of valuing a business is 2 to 3 times the profit plus assets the company has. The big but comes in on the organization of the company. If for instance you’re if your a single man operation and your clients are used to dealing with you and you only, you will be hard-pressed to get that evaluation. If you are part of the company and a company is not dependent on you, ie: you run the company but are not the only field technician. It maybe possible to get that evaluation. Most service companies do not get above the two time evaluation, however. P.S. Your salary would not be considered profit unless you are totally out of the field.

Good question. I have had another inspection business offer to buy my business if I relocate to another state. I’m not sure what I am actually selling since I don’t have any territorial rights…anyone can compete in my area so what actually is for sale here? However, I bought this business from a guy moving to Florida and leaving the business. I have him $1,200 for his inspection tools and name. My only assets are my inspection tools. Is client information valuable? Unless someone wants to buy my company tools, name and reputation, I don’t see any other value in a one man home based business. Can anyone enlighten me otherwise? Is there a big business opportunity to sell any post inspections to previous clients?

Reputation/ Good-will is a factor in selling businesses. I have sold 3 businesses and they were all 2-3 times the net profit + inventory. However none were a home inspection business

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If you sell a business, you are selling liability too?