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Question on how much to sell a Business For?

How would you calculate how much money to sell a business for , this is a small Home based Franchise That someone wants to buy from me and I am not sure how to come up with a Dollar amount to sell it for please Help , Best Answer 10 Big Points and maybe a Percentage , LOL , just Kidding.

4 months ago - 1 answers

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Chosen by Asker

Income Statement: EBITDA/15% is reasonable. In other words; Operating Cash Flow divided by 15%. EBITDA = $5,000.00 per year. Value of Business = $5,000.00/.15 = $33,333.33

by Joseph T

4 months ago

Asker's Rating: