I want to sell my business. How do i figure out an asking price?

I want to sell my business. How do i figure out an asking price?

I own a fitness club (Curves) and want to sell it. I rent the building so all I am selling is the business and the equipment. Is there any kind of formula based on gross sales or net sales that I can use to decide on an asking price?


There certainly is a formula based on gross sales and adjusted net income and for a Curves franchise it is not likely what you would hope it to be. A highly capitalized business, or a business with significant barriers to entry would command a price between 3 and 5 times adjusted net income- however, a Curves franchise has such low barriers to entry it will typically trades at about 2/3rd of annual revenue and a bit over 1-1/2 times adjusted net income. These are historical averages and there are many, many factors that will impact price. Contact a professional business broker in your community or myself for a more detailed pricing analysis.Note: Adjusted net income is net income with interest, taxes, depreciation, amortization and personal (non-business) expenses, e.g., health insurance, auto, etc. added back to the bottom line.Source(s):http://www.buysellflbiz.com/


Functioning businesses typically "retail" for roughly three years net PROFITS (not sales!), assuming they achieve an average ROI for their industry...Think about it, "buying a business" is not different than making any other investment, so the potential return is dependent on the inherent risk....if T-Bonds can yield 2% at close to zero risk, and a Stock portfolio can yield 8-10% with minimal risk and NO active participation, then to buy an operating business outright, the potential return must be FAR higher (thus the 33% expectation, returning 100% of the equity at risk within three years)...Bear in mind any prospective buyer can buy a NEW Curves franchise for about $28,000, and that whilst having "used" equipment reduces the value, if you have an established customer base that enhances it...Get out your books & do the numbers!Good luck!Source(s):http://www.buycurves.com/pricing/


I sold my Liquor/Wine outlet many years ago, and the accepted mark-up on that business was between 2 1/2 to 3 x Annual Net Profit.



Popular Q&A

Do all car insurance rates drop when you turn 25?
There are other factors involved...are you single, are you working, your driving record, do you smoke, etc.

In Ontario, how does auto insurance work? Do you need to insure yourself as a driver and your car separately?
Yes you insure the car and yourself as the driver and then can add drivers and more coverage to the policy if you want to.Basically you must get a standard coverage such as 1 million dollar liability or basic coverage if driving it.Hope that helps and best of luck.By the way shop around for...

Why do women get cheaper car insurance?
Having sold Automobile Insurance for years the only true answer is ' Younger Women pay less than Younger men ". A 45 yr old man pays the same as a 45 yr old woman. I guess you can compare it to the Army . They don't enlist men at 40 , they prefer them at 18 when they have more balls than brains...

I was hit by a drunk driver help?
Well, as for a rental car while you're without your own car, do you have that specific coverage in your auto policy? If so, great. All you need to do is contact an agent, and get it arranged. If not, then you're kind of out of luck unless you can get the other driver's insurance to take care...

What are good reasons to get emancipated?
Abuse is not a reason to be emancipated its a reason to contact CPS. Emancipation is about "self" support. This means "you" no one else paysrentgroceriesutilitiesgashealth careauto insurancephoneCellInternetcableetc etcThats even if your state has a statute some dont.Source(s):www.expertlaw...